WTI oil returned to red on Thursday and hit new 2018 low at $45.81, also the lowest since late Aug 2017, after larger bears paused on Wednesday on short-lived consolidation after Fed surprise.
Bears quickly regained control on global fall in stock markets and persisting negative sentiment on fears of oversupply which could further hurt demand, keeping investors in defensive mode.
Oil generated strong bearish signal on break of psychological $50 support, with subsequent extension lower, approaching target and pivotal support at $45.46 (Fibo 61.8% of $26.04/$76.88), violation of which would open way towards $42 and psychological $40 in extension.
Meanwhile, bears may hold above $45.46 for some time as daily studies are oversold, with upticks to be limited under $49.40/$50.00 barriers before fresh push lower.
Res: 47.49, 48.34, 49.40, 50.00
Sup: 45.81, 45.46, 44.26, 42.04
