WTI oil remains in red on Tuesday and holding above six-week low at $65.76, posted last Friday, in extension of Thursday’s strong fall which marked the biggest one-day loss in one year.
Top of rising daily cloud contained fall from $72.89 (22 May peak) for now.
Concerns over increase in production by world top producers, Russia and Saudi Arabia, in order to ease potential shortage in oil market on reduced supplies from Iran and Venezuela, keep oil prices under strong pressure.
Bearish techs are boosted by strong build of bearish momentum and keep the downside in focus. Penetration of daily cloud (cloud top lies at $66.32) and close below cracked Fibo support at $66.04 (61.8% of $61.80/$72.89 ascend) would generate strong bearish signals for attack at 100SMA ($65.18) and Fibo 76.4% support at $64.42), which guards daily cloud base ($63.80).
Meanwhile, oil price may hold in extended consolidation, as slow stochastic is oversold. Broken rising 55SMA (67.08) so far capped upside attempts, but initial signal of stronger recovery could be expected on bullish close today, which could risk corrective upticks towards sideways-moving 30SMA ($69.50), before fresh push lower.
Res: 67.08, 67.49, 68.50, 69.00
Sup: 66.32, 66.04, 65.79, 65.18
