Oil prices returned to red after brief correction as fears of virus spread affecting demand weigh heavily
WTI oil price returned to red on Friday after brief recovery from new eleven-week low ($54.77) stalled just under $56 mark.
Technical studies on daily chart remain firmly bearish and add to negative sentiment on rising fears that spreading of coronavirus would have serious impact on demand.
Thursday’s close below rising thick daily cloud was bearish signal, with today’s repeated probe below next pivot provided by 200WMA ($55.53), looking for additional negative signal on weekly close below.
Bears eye Fibo support at $54.34 (76.4% retracement), loss of which would expose key $50 support zone.
Deeply oversold daily stochastic warns, but so far lacking any clearer signal, with upticks expected to remain below cloud base to keep bears intact.
Res: 55.94; 56.46; 57.27; 57.58
Sup: 55.24; 54.77; 54.34; 53.75