Crude oil showed a gap-down opening on China’s demand concerns. It hit a low of $74.62 at the time of writing and is currently trading around $74.66.
Recent economic data shows China’s growth is losing momentum. New home prices declined sharply, unemployment inched higher showing that the Chinese economy is in stagnation.
Markets eye Gaza ceasefire talks and Middle East geo-political situation for further direction.
Major factors supporting higher Crude oil price
US dollar index - Bearish
US treasury yield- weak (positive for commodity market). Market anticipates rate cut by Sep.
Major resistance- $75.Any breach above will take the commodity to the next level $75.65/$76.80/$78/$80. Major trend reversal only above $84.50.
The near-term support is around $74, any violation below targets $73/$71.70..
It is good to sell on rallies around $77 with SL around $79 for TP of $71.70.
