WTI oil price fell around 3.5% during Asian / European trading on Tuesday and returned below $ 60 mark, coming under fresh pressure on stronger dollar and rising concerns that new lockdowns and slow vaccine rollouts in Europe will hurt demand recovery.
Fresh weakness signals that brief recovery after last week’s massive fall is over, as rebound from new five-week low ($ 58.30) was repeatedly capped by 30DMA and near-term risk shifts to the downside.
Bears pressure pivotal supports at $ 58.30/14 (Mar 18 low / 55DMA), loss of which would risk test of rising daily cloud top ($ 57.14) and deeper pullback from new multi-month high at $ 67.95 (Mar 8).
Traders focus on crude inventories reports (API is due late today and EI on Wednesday) for fresh signals, with increase in crude stocks to further pressure oil prices.
Broken $ 60 level now offers solid resistance but near-term bias is expected to remain with bears while the price action stays below 30DMA ($ 62.01).
Res: 60.00, 60.33, 61.32, 62.01.
Sup: 58.30, 58.14, 57.38, 57.14.