Technical Outlook CRUDE OIL 07.07.2017

Technical Outlook CRUDE OIL 07.07.2017

US CRUDE OIL

WTI oil remains firmly in red for the third straight day and approaches support at $44.05 (Fibo 61.8% retracement of $42.04/$47.30 recovery rally).
Fresh bears found temporary footstep at $44.19 (4-hr cloud base) but strong bearish structure on all timeframes sees risk of further weakness
Oil price was sharply down in early Friday as strong concerns about global oversupply continue to heavily weigh on overall sentiment and offset positive impact from upbeat US crude stocks data, which showed much stronger than expected draw in crude inventories last week. (crude stocks fell 6.3 million barrels, beating forecast for 2.4 million barrels draw).
Close below $44.05 pivot would generate strong bearish signal for further weakness towards targets at $43.28 (Fibo 76.4%) and $43.62/52 (26/23 June lows), with final push towards key support at $42.04 (21 June low) not ruled out.
Broken 20SMA marks initial resistance at $44.71, followed by top of 4-hr cloud at $45.00 and broken 10SMA at $45.14.

Res: 44.71; 45.00; 45.14; 45.40
Sup: 44.19; 44.05; 43.66; 43.28