Type: Bearish ReversalKey Levels:Resistance: 114.35Pivot: 112.05Support: 107.92Preferred Case:Prices are on bearish momentum and abiding by our descending trendline resistance. We see the potential for a further bearish continuation from our Pivot at 104.45 in line graphical overlap, 23.6% Fibonacci retracement and 127.2% Fibonacci extension towards our 1st support at 94.44 in line with 61.8% Fibonacci Projection. Our bearish bias is further supported by Ichimoku forecasting the bearish move.Alternative Scenario:If prices were to reverse, they can potentially reach our 1st resistance at 107.84 in line with 100% Fibonacci projection.Fundamentals:The lockdown of Shanghai, following a similar move in Shenzhen, casts doubt again on China’s approach to dealing with Covid-19 using the covid-zero strategy and its impact on oil demand from the largest consumer and importer of oil. This will support our bearish view on oil.
Source: Tickmill
