WTI OIL – risk of deeper pullback on loss of 20SMA support
WTI oil price remains in red for the second day and pressure support at $57.10 (20SMA) which guards pivot at $56.75 (29 Nov higher low).
Break here would signal increased risk of deeper pullback as loss of $56.75 handle would complete daily failure swing pattern and open way for extended correction from $59.02 (24 Nov peak).
Extended correction could travel to $56.41 and $55.80 (Fibo 61.8% and 76.4% of $54.80/$59.02 upleg respectively) with extended bearish acceleration to unmask key near-term support at $54.80 (14 Nov trough).
Early downside rejection (ideally above 20SMA) would signal an end of corrective phase and shift near-term focus higher as overall structure remains bullish.
Release of API US crude stocks data, due later today, is in focus.
Res: 57.62; 57.88; 58.31; 58.86
Sup: 57.10; 56.75; 56.41; 55.80