WTI Oil Outlook: WTI extends free fall below psychological $60 support

Slobodan Drvenica Windsor Brokers

US CRUDE OIL

WTI oil holds firmly in red for the tenth straight day on Friday and hit new nine-month low on break below psychological $60 support. Free fall is expected to extend as oil price is on track to end fifth consecutive week in red. Friday's extension through $60 handle cracked support at $59.46 (Fibo 50% of $42.04/$76.88), opening way towards supports at $58.29 (100WMA) and $58.19/06 (14/09 Feb through, also lows of 2018). Strong bearish setup of daily / weekly techs supports scenario, with oversold conditions being ignored for now. Rising global output offsets threats of shortage on sanctions on Iran and producing oversupply in the market, which keeps oil prices under strong pressure along with lower demand on weakening global growth adding to strong negative sentiment. Strong bears could be interrupted by corrective upticks which are expected to provide better selling opportunities.

Res: 60.00; 60.76; 61.30; 62.40
Sup: 59.25; 59.02; 58.29; 58.06

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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