Oil price tumbles on OPEC news

WTI oil price was sharply down on Wednesday (4.1% until early US session), deflated by the news that OPEC+ group delayed their meeting scheduled for Nov 26 to Nov 30.

The cartel is widely expected to extend its supply cut into next year, but there are also speculations that world biggest oil producers may deepen cuts, as the outlook for global demand remains gloomy.

Fresh weakness further weakened the picture on daily chart, as bull-trap above 200DMA was initial negative signal, boosted by today’s strong bearish acceleration which retraced over 61.8% of $77.36/$78.44 upleg and signaling that recovery phase is likely over.

Daily MA’s returned to full bearish configuration and 14-d momentum fell deeper into negative territory, contributing to threats of retesting Nov 16 multi-month low ($72.36) loss of which would signal continuation of larger downtrend from $95.00 (2023 high).

Broken Fibo 61.8% ($75.61) reverted to initial resistance, followed by 10DMA ($76.54), with 200DMA ($78.06) being a game changer.

Res: 75.61; 76.51; 78.06; 78.78
Sup: 74.05; 73.57; 72.89; 72.36