WTI bears overtake the psychological support at $71
In the real of the daily candles, the market closed last Friday with a Doji bar just above the psychological support at $71. The long-awaited OPEC+ meeting on Sunday, where their members agreed on gradually adding supply to the market, brought skepticism to the energy sector.
Appealing projections about the global demand getting back to the pre-pandemic level of around 100 MMbdp in 2022 weren't enough bulls to regain control. Uncertainties have overtaken the market once again.
The American benchmark has erased 14% of gains from the previous high on July the 6th from $76.95 testing today the 65.88 level.
The latest news about the new virus strain has brought the most profound concern to the market where potential lockdown protocols could affect the oil demand. The risk-off mode could likely continue to full steam until this Wednesday with the US crude supply report.
Technically speaking, the price has reached a strong level, a previous supply zone below the 0.618 Fibonacci level, breaking the ascending trendline. The RSI is close to diving into an oversold area and forming a hidden bullish divergence.
As always, please remember to trade what you see, not what you think.
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