On Friday, the WTI crude oil sets for its most significant monthly slump in six months as U.S. President Donald Trump ramped up trade worries, pressuring on the demand outlook.
Earlier, the talks were related to the U.S, China trade war and how both economies are retaliating. Lately, Trump brought Mexico in the game. U.S. President Donald Trump promised on Thursday to strike tariffs on all goods from Mexico until it stops unauthorized immigration, lighting up fears over economic growth and thirst for oil.
Well, the crude oil is beaten by the uncertainty about the US-China trade tensions and the future of global oil demand for the rest of the year. Besides, American oil stockpiles remain near a 22-month high.
Crude Oil – Technical Outlook
WTI oil went down under the critical daily Moving Averages and slipped below the 38.2% Fibonacci retracement of the 2018-2019 advance at 57.30.
Support and Resistance
Key Trading Level: 57.53
On the lower side, there are levels where the price may go: 54.40 (50% Fibo) and 52.95 (200-week M.A.). The technical outlook is likely to remain bearish
as long as the price stays below 57.30. Consider staying bearish under 54.90 to target 53.30 or stay bullish over 54.95 today. All the best!