Oil started the week in red and broke below strong support at $48.68 (200SMA) which held weakness on Thu/Fri after recovery stalled under ke$50 barrier.
Today’s fresh weakness cracked psychological $48.00 support (also near Fibo 61.8% of $47.08/$49.61 recovery leg), signaling that correction might be over.
Daily close below $48.05 Fibo support would generate another bearish signal and risk return to $47.08 (14 Mar spike low/the lowest since 30 Nov).
Overall structure remains bearish and $47.08/$49.61 bull-leg that was capped under thick daily cloud, is seen as correction ahead of fresh extension of larger downmove from $55.01 (21 Feb high) for renewed test of $47.17 pivot (Fibo 61.8% of larger $42.19/$55.22 rally).
Broken 200SMA now acts as strong resistance which is expected to ideally cap.
However, daily RSI is entering negative territory and may delay bears, but no bullish signal seen for now.
Res: 48.67, 49.23, 49.61, 50.00
Sup: 47.95, 47.68, 47.17, 47.08
