Prices of the American sweet light crude oil traded on the defensive for another session on Friday dropping by nearly 3%. The price of a barrel of WTI is under pressure as the pick up in the demand for the greenback continues to weigh on traders’ sentiment. Rumors over the US-China trade dispute appears to be the main drivers of price action in the risk-associated complex for the time being.
As expected, the divergence between the price and the momentum showed its effect by causing the plunge in Crude oil prices. The price dropped by nearly 3% on Friday after an impressive run to settle below the $59 level. The price is currently trading just below it with a decreasing momentum. Having more room to drop before entering the oversold state, we will be focusing on the 58.02 support level.
Support: 58.02 / 57.32
Resistance: 58.9 / 59.4