Oil under pressure, eyeing to test $47.00 support

WTI crude oil extended its sharp slide for sixth consecutive day and is now moving closer to $47.00 mark as looming 'Brexit' worries coupled with disappointing US crude oil data has kept bulls on the back-foot.

Adding to this, global risk aversion seems to drive investors away from riskier asset class like equities and commodities, like oil. Currently trading below the mid-point of $48.00-47.00 handle, the black gold earlier on Thursday dropped to test its lowest level since May 19.

On Wednesday, oil fell after the EIA reported shrinkage in US crude oil inventories, but was less than 2.3 million barrel fall expected. 

The commodity has also been dragged lower by uncertainty surrounding the June 23 UK-EU referendum, which has been supportive for the safe-haven appeal of the greenback and has kept commodities suppressed.

Technical levels to watch

Weakness below a previous strong resistance, now turned immediate support, near $47.00 handle seems to accelerate the fall towards its next major support near $46.00 round figure mark with intermediate support near $46.70-75 zone.

On the upside, $47.50-60 area now seems to act as immediate resistance, above which the commodity seems all set to reclaim $48.00 mark and head towards its next major resistance near $48.60-65 area.