WTI ended yesterday’s session at $56.87 after opening at $57.34. Prices were lower in early Asian trade on softer China macro data and the ongoing disruptive Hong Kong protests. The main driver for oil price volatility remains the U.S China trade talks, with investors eagerly awaiting any developments, in hope that President Trump addresses the topic today in his appearance at the New York Economic Club. OPEC cuts and the latest discovery out of Iran (a giant oil field reportedly containing the equivalent of 53 billion barrels of oil) will keep prices under pressure.
WTI bounced back and forth from our support level at $56.22 and our resistance at $57.21. We expect the market to test our trendline, if prices succeed in printing a lower high at $57 (4th day consecutive lower high). Further downside is likely with the target at our respective support lines if prices close below $56.50. On the other hand, if the uptrend is maintained, our resistance level at $57.21 should be tested.
Support: 56.22/ 55.85 / 55.50
Resistance: 56.58/ 57.21