WTI OIL extends pullback from $59.02; markets focus key event – OPEC policy meeting
WTI oil price fell further on Tuesday, in extension of Monday’s over 1% losses on pullback from recovery peak at $59.02.
Pullback on oversold daily techs could extend further to test solid supports at $57.17 (rising 10SMA) and $56.65 (rising 20SMA).
Extended corrective action should not exceed $56.41 support (Fibo 61.8% of $54.80/$59.02 upleg) to keep in play immediate hopes of testing psychological $60 barrier.
Otherwise, deeper correction could be expected and supports at $55.80 (Fibo 76.4%) and $54.80 ( key n/t support / 14 Nov trough) would be exposed on break lower.
Steep uptrend from $42.04 (2017 low) requires correction as overbought weekly studies are generating negative signal.
OPEC meeting on Thursday is focused as key event for oil markets this week. It seems that the cartel is facing a tough policy talks, as OPEC’s efforts to rebalance the oil market rise concerns about global oil deficit which could further boost oil prices.
Currently, the cartel doesn’t have a consensus about extension of current output cut program that raises concerns about the outcome of cartel’s meeting on Nov 30.
Res: 57.90; 59.02; 59.82; 60.00
Sup: 57.41; 57.17; 56.65; 56.41