WTI oil price holds in red for the second day and fell to new over one-week low at $21.98 on Monday as overall sentiment remains weak.
OPEC+ group reached a deal to reduce output by 9.7 million bpd (approx. 10% of daily production) but markets continue to worry that strong fall in global demand (April’s demand is estimated to fall by 30 million bpd) would outweigh producers efforts to stabilize oil market.
Oil price is in downtrend since recovery rally on renewed optimism stalled at $29.11 and fresh weakness retraced slightly over 61.8% of $19.24/$29.11 recovery leg, but was so far unable to clearly break below pivotal support at $23.01 (Fibo 61.8) following four unsuccessful attempts.
Daily studies show rising bearish momentum and RSI/Stochastic pointing lower, while MA’s are turning to full bearish setup that keeps near-term focus shifted to the downside.
Eventual close below $23.01 would generate negative signal for extension of bear-leg from $29.11 towards $21.57 (Fibo 76.4%), with stronger bearish acceleration to risk retest of critical $20 support zone.
Broken 10 DMA ($23.76) and 20DMA ($24.14) mark solid barriers which are expected to cap and maintain bearish bias.
Res: 23.01; 23.76; 24.14; 24.66
Sup: 21.98; 21.57; 20.74; 20.00
