Market Sentiment: Bearish
Key Takeaways:
- Oil plunges broadly
- ISM Manufacturing PMI to incite high volatility
- $90.00 remains key support area
Crude oil plunged broadly yesterday, dragging the price of West Texas Intermediate (WTI) to less than $90.70 ahead of some key economic releases. The bias however remains bullish due to Higher High and High Low in the recent wave on the four-hour timeframe.
Technical Analysis
As of this writing, the price of WTI is hovering around $91.07 a barrel in the New York Mercantile Exchange (NYME). A major support can be witnessed around $90.31, the swing low of the recent downside move as demonstrated in the following chart. A break below the $90.31 support area could turn the short-medium term bias bearish, validating a move below the $90.00 milestone. 
On the upside, the
The price of crude oil is likely to face a hurdle near $91.28, the 76.4% fib level ahead of 91.88, the 61.8% fib level and then $92.05, the confluence of 55-Day SMA and 100-Day SMA on the four-hour timeframe.
ISM Manufacturing
The Institute of Supply Management (ISM) will release the US Manufacturing Purchasing Managers Index (PMI) report today. According to the median projection of different economists, the manufacturing activity remained 58.5 points in September as compared to 57.9 points in the month before. Generally speaking, higher manufacturing activity is considered positive for the US economy thus seen as bearish for Crude Oil. So high volatility is expected during the New York session amid ISM manufacturing news.
Trade Ideas
Considering the overall technical and fundamental outlook, selling oil on a break below the $90.00 support area appears to be a good strategy in medium to long term.