WTI Oil price eased on Friday after previous day’s strong rally which pared a part of heavy losses that oil suffered this week. Recovery on profit-taking peaked at $47.45 (capped by Fibo 38.2% of $50.41/$45.57 descend) on Thursday, but oil prices remain under strong pressure after Hurricane Harvey paralyzed over a quarter of US refining industry and reduced refinery demand for crude oil.
Overall picture remains negative, as WTI contract is on track for the fifth weekly close in red and the biggest weekly fall since the first week of July.
Negative fundamentals are supported by bearish technicals, as studies on daily chart remain in full bearish setup and maintain downside pressure.
Daily Tenkan-sen limited Thursday’s recovery and caps today’s action, marking initial resistance at $47.02, along with daily cloud which twists on Monday, expected to pressure the price.
Break below the base of narrowing daily cloud ($47.52) would open $46.30 (Fibo 61.8% of Thursday’s rally) and risk further weakness on break.
Only sustained break above Tenkan-sen and lift above Thursday’s high would sideline immediate bearish pressure and signal further recovery.
Res: 47.02, 47.45, 47.99, 48.56
Sup: 46.52, 46.30, 46.00, 45.57
