58.00 level is confluence of fibonacci numbers – 23.6, 38.2 and 61.8. It is a role reversal resistance as well.
– Corona Virus fears
– Indecisive OPEC and OPEC+ supply cuts
– US continuous production of oil
Headwinds to Short Position:
– Continuing Libyan conflict
– Any Middle East tension
– Resolution to Libyan conflict. Libya is losing money with the current situation. If they resolve and decide to continue oil production, supply of oil will go up, pressing price down.