Crude oil trades below $70 on demand concerns. It hit a low of $67.13 and is currently trading around $68.42.
Oil declined sharply after dismal US jobs data on Friday. The weak US and Chinese economy pulled the oil prices lower.
Tropical storm Francine got strengthened in the Gulf of Mexico forcing drillers to halt oil production.
US dollar index - Neutral
US treasury yield- bearish (positive for commodity market).
Major resistance- $69.10. Any breach above will take the commodity to the next level $70/$71.70/$72.80/$73.20. Major trend reversal only above $84.50.
The near-term support is around $68, and any violation below targets $67.75/$67.
Indicators (4- hour chart)
ADX- Bearish
CCI (50) - Bearish
CCI (14)- Bearish
It is good to buy on dips around $67.50-55 with SL around $66.75 for TP of $71.
