WTI Oil outlook: Oil prices fall on fresh optimism over peace talks

Slobodan Drvenica Windsor Brokers

Brent price fell almost $4 on Monday, after initial fears of stalling peace talks that resulted in weekly opening with gap higher, was replaced by more optimistic tones from top US officials.

Fresh weakness cracks again significant support provided by 200 DMA ($78.05) which resisted four consecutive attacks last week.

On the other hand, the upside remains protected by broken Fibo 61.8% support ($81.91) which reverted to solid resistance.

Softening fundamentals on potential of reaching peace deal for the whole region and start of normalization of energy supplies is expected to keep oil prices under pressure, with sustained break of 200DMA to signal bearish continuation (after a short consolidation).

Daily studies show strengthening negative momentum and MAs in predominantly bearish configuration, although RSI is entering oversold territory and warns that larger bears could continue to face headwinds from 200DMA that may hold the price in extended sideways mode

Next target lays at $73.04 (Fibo 76.4% of $58.70/$119.47 uptrend) guarding psychological $70 level, while near-term bias is expected to remain with bears while the price stays below $81.91 Fibo barrier.

Res: 80.79; 81.91; 84.18; 85.29

Sup: 76.56; 75.76; 73.04; 70.00

Author

Slobodan Drvenica

Windsor Brokers

Industry veteran with over 22 years’ experience, Slobodan Drvenica joined Windsor Brokers in 1995 when he was an active trader for more than 10 years, managing the trading desk and own account departments.

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