WTI oil trades in a choppy mode on Thursday, amid volatile stocks and currency marks and still lacking clearer direction signal after three straight Dojis.
Recovery attempts from new multi-month low at $42.36 (2018 low, posted on 24 Dec) were so far unable to extend above pivotal $47.01 barrier (Fibo 38.2% of $54.54/$42.36 downleg).
The downside is expected to remain vulnerable while $47.01 holds, as persisting fears about oversupply and global growth slowdown which could reduce demand, keep oil prices under pressure.
Overall bearish daily techs add to negative outlook, although oil price eventually closed above 10SMA ($45.76).
Higher base at $44.40 zone (lows of past few sessions) mark pivotal support, loss of which would re-expose key supports at $42.36/04 (24 Dec 2018/21 Jun 2017 lows).
Bears could be sidelined on close above $47.01 for recovery extension towards 20SMA ($48.36), 30 SMA ($49.59) and psychological $50 barrier.
Res: 47.01, 47.75, 48.36, 49.59
Sup: 45.68, 44.40, 42.36, 42.04
