WTI oil consolidates within narrow range above new multi-month low at $52.10 on Tuesday but maintains negative tone.
Bears reduced pace after cracking 200WMA ($52.64) and approach to key Fibo support at $51.61 (61.8% of $42.36/$66.58), following fall of 15% in past two weeks, as deeply oversold daily studies warn of adjustment before bears resume.
Sentiment remains negative on rising worries that persisting trade conflict intensifies risk of global recession that could negatively affect demand for crude oil.
Downtrend from $66.58 (23 Apr high) maintains strong bearish momentum, but bears need confirmation on close below 200WMA and $51.61 Fibo support, to generate strong bearish signal and expose psychological $50 support.
Weekly crude inventories reports today and on Wednesday, are focused for fresh signals, however, repeated failure to close below 200WMA would signal extended consolidation.
Falling 5SMA offers initial resistance at $54.92 with extended upticks to be capped by falling 10SMA ($57.14) to keep bearish bias.
Res: 54.47; 54.92; 56.58; 57.17
Sup: 52.10; 51.61; 50.83; 50.00
