Failures cross the key SMAs join descending RSI line, not oversold, to keep crude oil sellers hopeful amid economic slowdown chatters. The black gold, however, needs to stay below the weekly support line, around $107.00 by the press time, to direct bears towards the last monthly bottom of $101.00. In a case where the energy benchmark fails to recover from $101.00, the odds witnessing a south-run towards May’s low of $97.57.
On the contrary, recovery moves remain less convincing until staying below the weekly top of $112.70. Ahead of that, the 50% Fibonacci retracement (Fibo.) of May-June upside and convergence of the 100-SMA, 200-SMA and 38.2% Fibo, respectively near $109.60 and $112.10-20, could entertain short-term buyers. Even if the crude oil prices cross the $112.70 hurdle, multiple resistances near $116.00 will challenge the commodity bulls before directing them to June’s peak of $121.43.
Overall, crude oil’s latest break of the short-term support line keeps sellers hopeful amid economic pessimism. That said, today’s Eurozone inflation and US ISM PMI will be important to watch for clear directions.