WTI Oil: Trading Near New 2022 Low, Pressured by Demand Concerns
Action Forex · 08 Dec 2022 4.2K Views

WTI oil price is consolidating above new 2022 low ($71.74) hit on Wednesday, following sharp four-day fall.

Growing concerns that economic slowdown would further weaken demand and increased production in the US, continue to pressure oil prices, with the latest break of previous low at $73.57 (Nov 28) signaling bearish continuation of the downtrend from a double-top and a lower platform at $93.60/72 (Oct 10 / Nov 7).

Bears cracked support at $72.49 (200MMA), which guards psychological support at $70, with stronger acceleration to threaten of extension towards $64.97 (200WMA).

Oversold daily studies suggest bears may take a breather for consolidation, with under falling 10DMA ($77.06) and broken Fibo 76.4% ($78.48) offering solid resistances which should cap upticks and keep bears intact.

Editor: Callie