Crude Oil’s Bearish Channel Remains Intact – Trade War Weighs
On Friday, crude oil prices continue to trade in narrow ranges as investors are feeling less confident to enter more selling on bearish fundamentals. The prime crude oil exporter Saudi Arabia is anticipated to lift its prices for all crude forms it sells to Asia.
It looks like the decision is being made in response to the attack on its oil facilities, which drove crude oil prices in Middle East benchmarks last month.
Overall, oil prices are still on track for a second consecutive weekly loss, driving concerns that impeded global economic growth would harm energy demand.
In addition, the US services sector and job growth data on Thursday fell below expectations and added further concerns about a global economic slowdown. This ultimately hit oil demand and intensified fears that a protracted US-China trade war could drive the global economy into a recession.
WTI Crude Oil – Technical Outlook
Crude oil is still following a bearish channel, trading mostly beneath 53.10 regions. Yesterday, the oil prices were testing the lower edge of a bearish channel, which is pushing crude oil prices higher above 52.45.
On the lower side, the immediate support that crude oil faces are at 52, and under this oil price can drop to 51.35 areas.
Support Resistance
51.21 53.06
50.15 53.86
48.3 55.71
Key Trading Level: 52.01
The idea is to stay bearish below 53 to target 52.01 level, while, buying can be seen above 52 areas today.
Good luck!
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