WTI outlook: Oil opens with gap lower as supply fears fade after Israel's attack on Iran
|Oil
WTI oil opened with wide gap lower on Monday and fell to the lowest levels in nearly one month, registering a drop of around 5% at the start of the week.
Israel’s attack on Iran over the weekend was a main oil driver with Iran’s oil facilities remaining intact that offset fears of energy supply disruption and deflated oil prices.
Monday’s sharp fall generated strong bearish signal on dip well below psychological $70 support (also the base of thick daily Ichimoku cloud) which held the action in past three days.
Also, breach of former higher low of Oct 18 ($68.15) added to negative outlook, along with short-lived recovery attempts in early European trading.
Bears pressure lower 20-d Bollinger band ($67.23) and eye Oct 1 spike low ($66.33) which guards key support at $65.26 (2024 low posted on Sep 10).
Close below $70 is seen as minimum requirement to keep bears in play, while close below $68.15 to reinforce bearish stance, as daily studies are in full bearish setup.
Res: 69.33; 70.00; 70.30; 71.00.
Sup: 67.23; 66.94; 66.33; 65.26.
Interested in Oil technicals? Check out the key levels
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.