Oil still looks bearish with resistance at the $69.00 level
- Following weaker US jobs data, oil prices recovered slightly after falling below $68.00 on Friday
Oil chart analysis
Following weaker US jobs data, oil prices recovered slightly after falling below $68.00 on Friday. During this morning’s Asian session, the price maintained its movement above $68.00 and the daily open price. Growth was limited, with resistance at the $68.80 level. The support looks stable for now, but the price is under constant pressure, and a break below would have to happen if the consolidation at this level continues.
Oil news and market drivers: Trafigura issues gloomy forecasts. Bloomberg reports that major commodity traders Trafigura Group and Gunvor Group Ltd. have issued gloomy forecasts for oil, with ongoing concerns about Chinese demand and oversupply. This could confirm our conclusion that the oil price will continue on the bearish side. Potential lower targets are the $67.00 and $66.50 levels.
The picture looks gloomy, but the price has some support for now
China is trying to consolidate ties with some oil-producing countries, and the Chinese premier is due to visit Saudi Arabia and the United Arab Emirates this week. This could stabilize the market and slow down its further decline to lower levels. With the price returning above the $69.00 level, oil would receive support from the EMA 50 moving average on the chart. Looking at the previous week, we have already tried this on a couple of occasions and had no success.
There is a potential for the price to hold and continue its upward trajectory. With potential higher targets at $70.00 and $71.00, the EMA 200 moving average at the $71.40 zone could act as a barrier to further price increases. This optimistic outlook could provide a ray of hope for the oil market.
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