The energy benchmark slipped beneath important resistance initially on the US President Donald Trump’s tweets that threatened to levy fresh tariffs on China during today's early session. The low downturn became fierce after the US journalist tweeted that China’s Vice Premier Liu He has canceled his trip to Washington in response to recent actions from President Trump. The US and China were earlier closer to a deal and Chinese delegation of lawmakers was to visit Washington to give the final touch to the much-awaited trade deal between the world’s two largest economies. Adding to the black gold’s weakness could be an increase in the US crude oil rig counts by 2 to 807 for the week ended on May 03.
After breaking the long term purple trend line presented on the chart, Crude oil prices have been declining in a rapid pace printing on Monday's early session a low of $60.15 per gallon. The price is currently trading just below the 60.5 level with an extreme bearish momentum that is on the verge of entering the oversold state. Our next focus will be on the 59.44 support level but we will be watching out from potential divergences.
Support: 59.99/ 59.44
Resistance: 60.97/ 61.55