Oil prices remain weighed by economic weakness in the world biggest oil importer China as last Monday’s disappointing read in GDP 4.7% against a 5.1% consensus forecast was followed by a CCP statement underscoring the complex economic environment it is facing. Adding to oils woes are OPEC plans of unwiding some of the supply cuts that has been providing a floor in prices. These far outweighed recent reports of inventory drawdowns in the US.
his outweighed concerns over a drop in US inventories and a decision to push ahead with plans of
Resistance
- 83.56 – Intraday Consolidation Low
- 83.16 – 50D Moving Average
- 82.71 – Intraday Consolidation Low
Support
- 81.57 – Intraday Consolidation Floor
- 80.75 – Daily Consolidation Low
- 80.22 – Intraday Consolidation High
Brent Crude saw a sharp sell-off to close below the 50D moving average Friday. With a closing bozu for a daily candle our bias will be to look for further weakness ever as we see the daily stochastic going in and out of oversold levels the past three weeks. Consider a push through Friday’s lows as an excuse to jump short the immediate objective at 80.75 a daily consolidation low from March and May. Alternatively long wicks in hourly charts coming of 82.71 may also be seen as an entry.
