Crude oil falls further after gap-lower opening as virus concerns weigh heavily
WTI oil price started the week with 130-pips gap lower and extended lower to the levels last traded in early Oct, pressured by concerns that virus spread could have strong negative effect on oil demand.
The price holding firmly in red for the sixth straight day, with massive weekly bearish candle of last week (WTI contract was down nearly 9% for the week) weighing heavily.
Bearish daily/weekly studies add to negative signals as bears eye key med-term supports at ($50.91/49 weekly higher base.
Strongly oversold conditions warn, however, daily indicators continue to head south and lack any firmer signal of correction.
Bearish bias is expected to remain fully in play as long as today’s gap stays unfilled.
Res: 53.14; 54.34; 55.00; 55.94
Sup: 52.14; 51.40; 50.91; 50.49