Bears take a breather above key Fibo support
WTI oil price is holding in sideways mode on Monday, contained by important Fibo support at $54.45 (61.8% of $52.95/$56.88) and consolidating after Friday’s strong fall.
Escalation of US-China trade war increases pressure on oil price as fears of reduced global demand rise.
Last Friday’s 2.6% drop formed bearish engulfing pattern on daily chart that adds to negative outlook also signaled by rising bearish momentum and MA’s returning to full bearish configuration.
Near-term focus remains shifted lower and bears look for renewed attack at $54.45 pivot, clear break of which is needed to confirm reversal and open way towards targets at $53.88 (Fibo 76.4%) and key near-term level at $52.95 (26 Aug trough).
Broken Fibo 38.2% support at $55.38, reinforced by converged 10/30DMA’s, marks significant resistance, which is expected to cap and keep near-term bears intact.
Res: 55.22; 55.38; 55.95; 56.12
Sup: 54.45; 53.88; 53.68; 52.95