US Oil has halted its minor weakness at $56.03 and shown a minor jump of more than $1.5. The escalation of tension between the US and Iran and OPEC extension of production cut till Mar 2020 is supporting oil prices at lower levels. According to EIA, commercial crude inventories declined by 1.1 million compared to forecast of -2.8 million. But weak economic data from the US and Europe is increasing the chance of economic slowdown which is putting pressure on oil prices. It hits high of $57.55 and is currently trading around $57.12.
On the flip side, $56 will be acting as near term support and any break below will drag the commodity to the next level till $55.50/$54.21 (61.8% fib).
The major trend reversal level is around $60.25 (100- W MA) and any violation above will take the commodity till $62.10 (300- W EMA). The near term minor resistance is around $57.70 (55- day EMA) and minor jump till $58.68 happens if it breaks $57.70.
It is good to sell on rallies around $57.75-80 with SL around $58.85 for the TP of $54.25.
