USOil Sinks Towards Daily Support

Technical analysis of Forex market

Oil plunges as the OPEC+ deadlock over supply, fuels concerns for a price war.

The RSI divergence already indicated a loss in the upward momentum.

Price’s successive drop below 75.00, then 73.60, is the confirmation of a correction. Strong momentum suggests that buyers are forced to run for cover.

The bears are pushing for the psychological level of 70.00. Below that, the rising trendline (68.40) from April 2020 would be critical support. 75.30 is now the resistance in case of a rebound.