WTI oil edges higher in early Wednesday after falling nearly 10% previous day (the biggest daily loss since Mar 9), as renewed supply concerns of growing recession signals slashed oil prices.
Profit-taking pushed the price higher, though technical studies are bearish and sentiment remains weak, suggesting limited recovery before bears fully re-take control.
From technical point of view, Tuesday’s marginal close below psychological $100 level was an initial negative signal, in addition to a massive bearish candle which was left on Tuesday and weighs on near-term action, which could retest a higher base of Mar/Apr at $92.64/92, on sustained break of $100 trigger.
Fundamentals add to negative outlook as growing fears that the global economy is heading towards recession that would hurt demand and offset threats about supply shortage after OPEC refused to increase output on US request.
Upticks face solid barriers at $104.66 (broken Fibo 61.8% of $92.92/$123.65); $105.71 (daily Tenkan-sen) and $106.44 (base of thick daily cloud), where rebound should be capped to keep near-term bears in play.
Res: 102.11; 104.66; 105.71; 106.44.
Sup: 100.00; 99.08; 97.42; 95.27.
