Potential Reversal Zone (PRZ)- $50.59
US oil is trading extremely weak for the past 1- week and lost more than 10% on account global growth slowdown and US-China trade war. The trade conflict will decrease the demand for oil globally. US API reported a draw of 3.4 million barrels for the week ending Aug 1, compared to analyst expectations of 2.84 million. But unable to boost oil prices on ongoing economic turmoil. It hits low of $52.69 and is currently trading around $52.53.
On the flip side, near term support is around $52.15 and any violation below will drag the oil till $51.48/$50.60.
The near term resistance is around $53.25-30 and any break above will take the pair till $53.74/$54.64/$55.60.
It is good to buy on dips around $52.15-20 with SL around $51.48 for the TP of $55.35
