Bearish close for WTI yesterday at $56.75 as prices eased from earlier gains after Trump’s remarks to a lunch gathering of The Economic Club of New York included mixed messages about U.S. China trade talks and excluded specifics about any progress in negotiations.Oil prices dipped as prospects for a trade deal between the United States and China dimmed, weighing on the outlook for the global economy and energy demand. No clear direction for the future of energy prices as the market is stuck between an oversupply condition and hopes of a successful trade deal that would boost global demand, awaiting the release of the U.S inventories data this week.
A bearish daily hammer close on WTI as the market trades below the 10 and 20 period SMA on the daily, 4H, and hourly chart opening the door for further downside with our respective support levels at 56.22 and 55.85 as targets. Noting that a daily close below 56.46 will confirm short term bearish momentum, while an intraday hourly close above 56.56 will likely boost price higher.
Support: 56.22 / 55.85 / 55.50
Resistance: 57.21 / 57.85