WTI oil fell ticks ahead of psychological $10 support on Tuesday in extension of Monday’s 23% drop.
The sentiment weakened again after recovery from new record low stalled on growing fears over almost full global oil storage and strong fall in global demand.
Markets remain strongly concerned that revival of demand for oil on easing restrictions worldwide would be too slow to make significant positive impact on oil prices that keeps prices under strong pressure.
Bears faced strong headwinds from $10 zone and price bounced about $2 after nearing support, but this so far looks like consolidation ahead of fresh attack, rather than any recovery attempt.
Fundamentals are still very weak to be able to spark more significant recovery, which would again need to regain minimum $20 zone to generate initial reversal signal and ease bearish pressure.
Current bounce so far stays away from first pivotal barrier at $13 zone (4-hr 10MA / Fibo 38.2% of $18.22/$10.05), which guards $15 zone (4-hr 20MA / Fibo 61.8) and key near-term barrier at $18.22 (23 Apr recovery high).
Res: 13.00, 14.13, 15.00, 16.29
Sup: 11.00, 10.22, 10.00, 6.52
