WTI OIL Outlook: US Oil Fell Nearly $2 after Trump Criticized OPEC for Too High Oil Prices

Technical analysis of Forex market

WTI oil price fell nearly $2 on Monday after US President Trump said that oil prices are too high and called OPEC to relax and keep prices steady. WTI contract dipped from $57.48 to the session low at $55.69 after Trump’s tweet, in post-news knee-jerk reaction. Fresh weakness broke back below 100SMA ($56.18) that weakened near-term structure, with bearish signal for deeper pullback, expected on daily close below 100SMA. Dips were so far contained just above strong support at $55.55 (broken Fibo 38.2%/top of thick 4-hr cloud), but risk of further easing exists as daily indicators turned south and the latest news soured sentiment. Daily 5SMA crested and turns lower, adding to initial negative signals, which would be confirmed on firm break below 100SMA and violation of $55.55 pivot.

Res: 56.72; 57.51; 57.79; 58.14
Sup: 55.83; 55.55; 54.76; 54.14

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