Oil remains under strong pressure on evidence of oil oversupply that offset OPEC efforts to support oil prices by extending output cut for additional nine months. Long red daily candle that was left on last Wednesday’s strong fall, continues to heavily weigh on market. Friday’s action is entrenched within narrow consolidation range above fresh one-month low at $45.19, posted on Thursday. Firm bearish setup of daily studies maintains strong bearish pressure, with close below cracked Fibo 76.4% support at $45.68 required to confirm bearish resumption which may extend towards key short-term support at $43.74 (05 May spike low). Oil is also on track for the third straight strong bearish weekly close which confirms strong bearish stance. Bears may take a breather on consolidative/corrective action signaled by oversold slow stochastic on daily chart, however, no firmer signals so far, as indicator continues to move south.
Res: 45.91, 46.16, 46.89, 47.62
Sup: 45.19, 44.81, 44.17, 43.74
