West Texas Intermediate crude prices got higher during Friday’s session, correcting in an improved sentiment in the markets and rebounding from a technically bullish candlestick pattern. The US crude benchmark logged a 5.5% weekly loss on the back of investors bailing out of risky asset classes due to heightened concerns over the global economic growth story. A series of poor data from the US in the week, coupled with uncertainties over global trade relations has tested the bull's commitments to oil prices and subsequently sank them close to the lowest levels for the year. All focus will be on the trade talks between the US and China as renegotiations will take place again starting today.
Crude oil prices started to correct during Friday’s session following a technical bullish candlestick pattern supported by a divergence between the price and the momentum. The price is currently sitting well above the $52.5 support level and the momentum looks to be picking up. We will be focusing on the upside as the divergences are yet to show their effects. We will be watching the $53.89 resistance level.
Support: 52.5/ 51.83
Resistance: 53.26/ 53.89