Oil prices accelerate lower on fresh demand concerns
WTI oil price fell around 1.6% on Wednesday after weak manufacturing data from Japan, Eurozone and Great Britain (PMI’s stay in contraction territory below 50 threshold) raised concerns about demand and further soured near-term sentiment.
Acceleration of a bear-leg off $81.71 (Aug 21 recovery peak) broke through $78.58 (Aug 17 higher low) and cracked pivotal Fibo support at $78.05 (38.2% of $67.02/$84.87) generating fresh bearish signal for deeper drop (signal to be confirmed on close below $78.05) towards next targets at $76.03/$75.94 (200DMA / 50% retracement).
Weakening technical structure on daily chart (14-d momentum remains in negative territory and started fresh decline, south-heading RSI below neutrality zone and multiple bear-crosses of 5/10/20/30DMA’s) contribute to bearish near-term outlook.
Resistances at $78.58 / $79.02 (Aug 17/18 lows) should cap and keep intact upper pivots at $80.00/66 (psychological / 10DMA) violation of which would sideline bears.
Res: 78.58; 79.02; 79.62; 80.00
Sup: 76.41; 76.02; 75.17; 74.50