WTI Oil edged lower on Wednesday, after limited upside action in early Asian trading stalled under strong barrier provided by 20SMA at $48.29.
Oil price showed no impact from hurricane Harvey that hit Texas over the weekend and caused disruption of oil production in a number of refineries.
Persisting concerns about global oversupply keep oil price under pressure, as rising US shale oil production offsets attempts of OPEC and non-OPEC oil producers to stabilize oil prices by slashing the oil production by 1.8 million barrels per day until March 2018.
Near-term outlook is turning negative and shifting focus towards strong support at $47.01 (daily cloud top) which contained two attacks last week.
Cloud is also twisting this week and may attract for fresh weakness.
Penetration into daily cloud would expose key n/t support at $46.44 (17 Aug trough).
Broken Tenkan-sen and Kijun-sen lines now act as resistances at $47.58 and $47.90 respectively, guarding south-turning 20SMA at $48.29.
Res: 47.58, 47.90, 48.15, 48.29
Sup: 47.22, 47.01, 46.44, 46.22
