Crude oil is consolidating near the top as bulls are facing some exhaustion after hitting the $54.30 high. The sentiment remains weighed by global growth concerns after both the IMF and United Nations downgraded their outlook. On top of that, the latest Chinese GDP report confirmed China slowdown fears and added further to the global economic outlook keeping oil prices nearly flat during today's session despite the positive oil supply-side scenario, with the OPEC output cuts underway and falling US rigs count.
Crude prices entered a consolidation after hitting a new high at $54.30 per barrel during yesterday's session. The price is currently trading nearly flat hovering just below the $53.89 resistance level. But we can see clearly a divergence between the momentum and the price pointing towards a downward move. However, the correction can be delayed and the price will most likely find support from the trend line presented on the chart to eventually continue its run towards the $55.25 level
Support: 50.60 49.80
Resistance: 52.85 53.58