Oil market is being traded short amid release of growing U.S. crude stocks data and worsening situation on the stock markets. Yesterday’s trading session was closed for Brent with decline by more than 2,7%, WTI was down 3,3%. Today Brent shows the result of -0,6%, WTI -0,5%.
Substantial pressure on the oil quotes is produced by the situation on stock markets, where major indices are traded in the red. Risk appetite declines amid serious escalation of relationship between USA and China. Investors are concerned, that conflict around Hong Kong may slow down trade negotiations between two countries.
On the chart we note strengthening of bearish signals. The price broke support at 60.00. The next target for price action is 58.50.
Resistance levels: 61.40, 62.50, 64.00;
Support levels: 60.00, 58.50, 57.00.
Main scenario: Stabilizing below 60.00 and decline towards 58.50.
Alternative scenario: Settling above 60.00 and growth towards 61.40.
Fundamental background is negative. Bearish signals prevail on the chart. We consider shorts at 60.00 and 61.40.