On the daily chart below for WTI crude
oil, we can see that after the surprise OPEC+ cut and a mini rally to the top
of the range at $83, the market saw an incredibly fast selloff. The bullish
case is the tight supply and underinvestment, but the demand side of the
equation is definitely leading, and it’s connected to a deteriorating global
economy.

The global central banks
tightening amid high inflation is dampening demand and it’s aimed precisely at
that. The recent weaker US labour market data has also played a big role and
the regional banking crisis is not helping either. It looks like the bearish
trend will continue until the central banks start easing but until then we may
see even lower prices.

WTI
Crude Oil technical analysis

On the 4 hour chart below, we can
see how the upper bound of the range acted as the top and then the third
rejection from the downward trendline was the last attempt by the
bulls to rally. After that we saw a big selloff with almost no pullbacks.
Tonight, we also saw a flash crash that was erased soon after once the price
bounced from the $64 low. The price is now overstretched, and we should see a
bigger pullback probably towards the $72 zone before the next big move.

On the 1 hour chart below, we can
see that a good level for the sellers would be the 61.8% Fibonacci
retracement level which is just beneath the bottom of the
broken range. Further downside is unlikely from here unless more regional banks
fail and the US labour market data miss expectations. Today we have the Jobless Claims
report and tomorrow the NFP. Watch out for these data points as they will cause
big moves in the markets.

This article was written by ForexLive at www.forexlive.com.