WTI oil price hit new multi-month low on Wednesday morning, in extension of Tuesday’s nearly 4% drop which fully reversed recovery of past three days.
Larger bears regained full control after limited correction and signal continuation of broader downtrend from 2023 peak ($95.00, posted on Sep 28).
Higher than expected US inflation numbers for November weighed on growing hopes that the Fed will start cutting rates early next year and sparked fresh acceleration lower, adding to concerns about global demand.
Markets also focus on Feds decision (due later today) which is expected to provide fresh direction signals, with more hawkish than expected stance to further boost bears
Bears look for weekly close below psychological $70 (reinforced by 200WMA) support for the first in six months, which would open way for test of a base at $67.00 (May/June) and 2023 low at $63.63 (Apr 30).
Upticks should ideally stay capped under $70 and not exceed falling 10DMA ($71.36) to keep bears intact.
Res: 68.79; 70.00; 71.36; 71.93.
Sup: 67.70; 67.02; 66.39; 65.65.
