WTI price dips as oversupply concerns offset positive impact from US aid package
WTI oil dips below $24 on Wednesday after hitting session high at $25.83, unable to hold gains, despite overall positive sentiment in the markets after US Congress passed aid package.
Oil prices remain vulnerable of fresh losses as concerns of rising concerns about oversupply offsets positive impact from US stimulus.
Russia announced it will boost April export in price war with Saudi Arabia for market share, threatening that market will be flooded with oil in the situation when demand was slashed by corona virus pandemic.
Technical studies on daily chart are not promising as momentum is flat deeply in the negative territory, RSI also in sideways mode on oversold zone borderline and MA’s in bearish setup.
Near-term action is expected to remain biased lower while remaining below falling 10DMA ($26.65), with rising threats on formation of bearish engulfing on today’s close in red and below $24.30, expected to add to negative signals.
Only close above 10DMA would ease downside risk and allow for stronger recovery.
Res: 25.83; 26.65; 27.38; 28.57
Sup: 23.83; 23.50; 22.95; 22.18