With the lack of any major positive triggers on the US-China trade deal, we continue to maintain a cautious stance on the Crude oil price. The oil market started the week on a negative note on November 18 and capped at 50MA (Weekly).
The price of Brent crude traced out a near-term price top near $63.00 in November 2019 via the formation of a triple top pattern. The daily studies RSI and oscillator have been shifted bearish. The shift in sentiment indicates that rallies to resistance at 0.8970-0.9030 should attract selling interest, with substantial support finds at $60.70 and $60.30. Below here, the focus will move down to 0.8770 and $59.00.
Potential threats remain between $63.00-$64.20 its 200MA.
We expect trade to continue to remain range-bound over the coming days due to lack of clarity on Trade deal and $60.20 and $59.00 to remain crucial support in the near term.
The key lower support area of $60.20-$59.00 could be tested amidst a range move in the next few sessions, but that area is unlikely to be broken decisively on the downside in the next 2-3 sessions.
The near-term behavior price of the crude oil price depends on the progress of the trade talks between US-China.
It is important to always keep in mind the risks involved in trading with leveraged instruments.
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