WTI Oil Price Dips on Renewed Demand Worries

Technical analysis of Forex market

WTI oil price eases on Monday, after last Thu/Fri strong recovery stalled on attempts through daily Tenkan-sen (104.55).

Oil came under pressure on renewed demand concerns after China had discovered first cases of Omicron variant and ordered mass testing for Covid 19 that weakened the sentiment, raising concerns that demand from world biggest oil importer may ease.

Daily techs remain bearishly aligned with Tenkan-sen / Kijun-sen in bearish setup and fresh rise of negative momentum that adds to the view of correction stall, though, such scenario needs firmer signal on close below $101.34 (Fibo 38.2% of $95.09/$105.21 recovery leg).

Further easing would risk fresh attack of psychological $100 level, loss of which weaken the structure and risk deeper drop.

Daily Tenkan-sen marks solid resistance, followed by another significant barrier at $106.91 (daily cloud base).

Res: 102.82; 104.55; 105.21; 106.40.
Sup: 101.34; 100.15; 100.00; 98.96.

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