WTI outlook: Oil prices fall further on demand concerns, but geopolitics remain supportive
|WTI
Oil price extends steep decline into the second consecutive day and hit two week low in early Tuesday, after the price fell nearly 4% on Monday.
Oil was deflated by weaker demand outlook and signals that Israel will not strike Iranian oil infrastructure.
OPEC cut its forecast for global oil demand in 2024, which increased pressure on oil prices, but negative impact is likely to be partially offset by heated geopolitical situation and permanent threats of further escalation.
Oil price fell near psychological $70 support, where bears may face increased headwinds, as 14-d momentum is attempting to reverse north just above the centreline and stochastic is about to probe into negative territory.
Pause at $70 level looks like possible scenario, although near-term bears will remain in play while potential upticks hold below (daily cloud base / Kijun-sen ($71.89) and offer better selling opportunities.
On the other hand, firm break through $70 pivot would signal bearish continuation and expose targets at $66.33 (Oct 1 low) and $65.26 (2024 low posted on Sep 9).
Res: 70.74; 71.89; 72.69; 73.70.
Sup: 70.00; 69.30; 68.37; 66.33.
Interested in WTI 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.