WTI OIL remains in red despite another draw in crude stocks
Oil price stands in red for the third straight day on Thursday and posted new low at $56.45, where Fibo 76.4% of $55.81/$58.54 upleg was met.
Oil remained under pressure despite EIA report showed stronger than expected draw in US crude stocks, which marks the fourth consecutive fall in oil inventories, as rising output continues to weigh.
Wednesday’s close below $56.91/85 pivots (daily Kijun-sen / Fibo 61.8%) was negative signal, threatening for full retracement of $55.81/$58.54 upleg and extension below $55.81 would generate strong bearish signal.
Bearish 1 & 4-hr studies are supportive for this scenario.
Broken daily Kijun-sen caps today’s action and is expected to keep the upside limited, however, extended upticks should not exceed daily Tenkan-sen ($57.17) to keep near-term bears in play.
Res: 56.91; 57.17; 57.50; 57.81
Sup: 56.45; 55.81; 55.17; 54.77