WTI oil price eases on Thursday on fresh risk aversion and persisting fears about global demand recovery on rising coronavirus cases and higher supplies from OPEC+ group.
The price action remains capped by daily cloud base for the second day and has recorded two strong rejections on probes through $40 barrier on Wed / today.
Mixed daily studies lack clear direction signal but negative fundamentals and bearish bias under cloud base, keep near-term focus skewed lower for now.
Expect initial bearish signal on break of converged 100/200 DMA’s ($39.35), which will be verified on extension and close below $38.90 (bull-trendline off $36.11, 8 Sep low / 50% retracement of $36.11/$41.69 rally).
Conversely, sustained break of $40 pivot would sideline immediate downside threats.
Res: 40.05, 40.32, 40.77, 40.93
Sup: 39.58, 39.35, 39.19, 38.86
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