US oil is trading extremely weak and lost more than 8%. Yesterday it plunged more than 5% worst fall in six months. The main reason for fall are
- Rise in crude oil inventory in US for second consecutive week -Inventory build of 4.7 million barrels compared to forecast of -1.2M.
2. US and China trade war escalation
The near term support is around $57.45 (38.2% fib) and any break below will drag the commodity till $55.84/$55.
On the higher side major resitance is around $60 and any violation above targets $62.39 (300-W EMA)/$63.79.
It is good to sell on rallies around $60-$60.10 with SL $62.40 for TP of $55.
