WTI oil was down $4 or nearly 20% since opening in Asia on Monday, as sentiment sours again on rising fears on physical storage being nearly full and coronavirus crisis made the strongest negative impact to global demand that hasn’t been seen even during recessions and wars. The WTI oil price recovered after drop below zero level for the first time in history, but recovery showed signs of stall and Doji reversal pattern is now forming on daily chart. We may not see the negative prices again but it the weakness is likely to persist and stronger recovery might be delayed for some time. Today’s bearish acceleration hit nearly 50% retracement of last week’s $6.52/$18.22 recovery (which stalled at initial pivot provided by daily Kijun-sen and Fibo 38.2% of $36.27/$6.52 descend) and is on track to generate strong bearish signal on strong daily close in red and completion of reversal signal. Key supports at $10.99 (Fibo 61.8% of $6.52/$18.22) and psychological $10 level are coming in near-term focus, with retest of contract’s record low at $6.52, not ruled out. Technical studies remain bearish on all timeframes and support the weakness. Broken Fibo 38.2% ($13.75) marks pivotal barrier, with return and close above here to ease immediate bearish pressure, but near-term outlook is expected to remain negative as long as the price action stays below converged 10/20DMA’s ($15.47/$15.95) on track to form bear-cross.
Res: 13.31; 13.75; 15.46; 15.94
Sup: 12.00; 10.99; 10.22; 10.00
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