WTI oil outlook: WTI oil collapses to 8-month low on growing recession fears
WTI oil
WTI oil price tumbled on Friday, hitting the lowest levels since early January, as dollar spiked to new 20-year high and growing demand fears as sharp increase of interest rates is driving major economies into recession. The contract was down over 5.5% for the day until now, with losses likely to extend as bears accelerated through key technical supports.
Break of former low at $81.17 (Sep 8) signaled an end of corrective phase, with violation of psychological $80 support, adding to negative signals.
WTI is on track for the fourth straight weekly drop, with likely weekly close below $83.13 (broken Fibo 38.2% of 2020/2022 $6.57/$130.48 recovery) to generate strong bearish signal, which will be reinforced by close below $80 level.
Bears eye next pivotal supports at $78.48/$77.35 (Fibo 76.4% of $62.42/$130.48 bull-leg / 100WMA), violation of which would risk drop towards $72.34 (200WMA).
Res: 80.00; 81.17; 81.73; 83.13.
Sup: 78.48; 77.34; 74.25; 72.34.
Interested in Oil technicals? Check out the key levels
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.
