US oil is holding in red for the sixth straight day, pressured by concerns of global oversupply and recent geopolitical tensions in the Middle East.
Bears were so far unable to break strong support at $46.89 (Fibo 61.8% of $43.74/$51.98 rally) which held downside attempts in past two days and also containing today’s action.
Friday’s long-tailed and yesterday’s long-legged daily candles signal strong hesitation at this support, with close below needed to trigger an extension of bear-leg from 29 May lower top at $50.27.
Near-term action is capped under strong barrier at $47.86, provided by broken daily Kijun-sen/50% retracement, with immediate bearish pressure expected to persist while the price is holding below this resistance.
Bearish daily studies keep the downside at risk, however, further consolidation could be expected on oversold slow stochastic.
Extended upticks face solid barriers at $47.86 (daily Kijun-sen) and $48.40 (Monday’s high and strong upside rejection, which are expected to ideally cap.
Res: 47.72, 47.86, 48.40, 48.74
Sup: 46.89, 46.74, 46.00, 45.68
