Type: Bearish MomentumKey Levels:Resistance: 9978Pivot: 9516Support: 8700Preferred Case:On the H4, with price moving within the ascending trend channel, we have a bearish bias that price will drop to the 1st support at 8700 in line with the 100% fibonacci projection within the trend channel at the swing low, from the pivot at 9516 at the swing high in line with the 100% fibonacci projection.Alternative Scenario:Alternatively, price may reverse off the pivot, break the trend channel and rise to the 1st resistance at 9978 at the horizontal swing high.Fundamentals:A likely deteriorating Covid-19 outbreak in Beijing, China, the key demand source for crude, will see the maintenance of offers on oil prices. On the supply front, an agreement between the Norwegian Oil and Gas Association and three unions to avert a strike is being struck.
Source: Tickmill