WTI oil slumps over 6% on mounting demand fears
WTI oil slumped on Tuesday (so far down 6.1% for the day), extending steep fall into fifth straight day.
Markets remain highly concerned about demand as global economic recovery shows signs of slowing down, with rising number of Covid-19 new cases, especially in the US, Britain and India, further souring the sentiment.
Oil price fell almost $3 until now and is on track for the biggest daily loss since 11 June.
Bears hit new lowest level in almost three months ($36.31) after emerging below rising thick daily cloud (base lays at $36.58).
Strong fall in past few days after bulls repeatedly failed to clearly break above pivotal Fibo resistance at $43.05 (61.8% of $65.63/$6.52), warns of deeper correction of Apr/Aug $6.57/$43.75 recovery leg.
Bears need to close below daily cloud to generate strong bearish signal, which will be confirmed on extension below $36.19 (rising 100DMA) and open way towards $34.96 (Fibo 23.6% of $6.52/$43.75) and $34.33 (15 June trough).
Strong bearish setup of technical studies on daily / weekly chart supports scenario.
Res: 37.06; 38.52; 39.30; 39.52
Sup: 36.00; 35.39; 34.96; 34.33