WTI oil price fell over $3 in early Monday’s trading, hitting one-week low, as new fast-spreading coronavirus strain that has shut down Britain and tightened restrictive measure in Europe, revived fears of slowdown in global demand recovery.
Sharp fall in Asian / European session on Monday, marks so far the biggest one-day drop since June 11.
Pullback from new multi-month high ($49.40) comes after seven straight weeks of gains, with expectations for improvement in sentiment on US Congress agreement about new coronavirus aid package, being fully offset by new and fast-spreading virus fears.
Fresh bearish acceleration weakened technical studies on daily chart, increasing risk of further fall, as bears pressure pivotal supports at $46.20/$45.98 (20DMA / Fibo 61.8% of $43.87/$49.40 upleg), break of which would open way towards $43.87/37 (Dec 2 trough / Fibo 61.8% of $33.61/$49.40).
Res: 47.14, 47.14, 47.95, 48.07.
Sup: 45.98, 45.67, 44.94, 44.67.
