WTI Oil extends steep fall from Monday’s $70.58 lower top and hit the lowest in nearly three months on Tuesday.
A number of factors continue to weaken oil’s sentiment, with the latest decision of OPEC+ group to proceed with planned production increase, adding to growing uncertainty over escalation of trade war, as well as halt of US military aid to Ukraine.
Markets anticipate that economic slowdown in deepening trade conflict would significantly impact demand, while supply is expected to continue to rise and that would further weigh on oil prices.
Bearish technical picture on daily chart contribute to negative outlook, with recent break through significant supports at $70/$69.90 (psychological / Fibo 76.4% of $66.98/$79.35 rally) and multiple recovery rejections at this zone, before bears regained control, have generated strong bearish signal.
Upticks on partial profit-taking are likely to be limited and stay under $69.70/$70, now acting as solid resistances and reinforced by falling 10DMA, to keep larger bearish structure intact and offer better selling opportunities.
Res: 68.37; 69.00; 70.00; 70.58.
Sup: 67.42; 66.98; 66.54; 65.26.
