WTI OIL – strong technical signals warn of correction
WTI oil holds in red on Monday and extends lower, despite expectations to rise after pipeline disruption in the Middle East and concerns of oil facilities damage on deadly earthquake that hit Iran and Iraq early on Monday.
Fresh easing is threatening Friday’s low at $56.54 and key near-term support at $56.40 (08 Nov low) loss of which would generate stronger bearish signal for extended pullback.
Completion of diamond top pattern on daily chart reversal of indicators from overbought territory are strong bearish signals which indicate correction.
Extension below rising 10SMA ($56.08) is needed to confirm scenario.
Res: 57.00; 57.51; 57.90; 58.85
Sup: 56.40; 56.08; 55.82; 54.53