It's currently caught in a weak level of prior price support and is vulnerable to further downside, nothwithstanding the oversold RSI level.
No doubt, Saudi's open reflects that of OIL's large gap down on Sunday's open, as well. It also broke below a bearish head and shoulders neckline and fell to levels seen in 2000, as shown on the following weekly chart. The low, as of 6:40 pm ET, is 30.01.
It's currently caught at a major level of prior price support and is vulnerable to further downside, nothwithstanding the oversold RSI level...particularly if Russia continues its refusal to cut oil output, as is being pushed by OPEC, and if demand continues to drop due to the global spread of the coronavirus.
The S&P E-mini Futures Index (ES) and USD/JPY forex pair have followed suit and gapped down, as well, as shown on their respective weekly charts below.
My latest support and resistance levels for the ES can be found in my last post here, as well as other market gauges I'm monitoring for potential directional strength/weakness.
Price on the USD/JPY has fallen back to long-term price support in a large bearish falling wedge formation...suggesting further weakness, nothwithstanding the oversold RSI level.
BOTTOM LINE:
These four instruments are strongly suggesting that further weakness is in store for global markets and their economies, inasmuch as they are at critical levels, which, if breached with force, could begin a global bear market in short order, with a possible global recession following sometime this year.
