US Oil has halted its 2 weeks of a winning streak and lost nearly $2 from the high of $60.26. The commodity recovered more than 15% in the past 2 weeks on Middle east tension escalation and easing trade tension between the US and China. But weaker than expected US and Europe PMI is an increasing chance of economic slowdown which is putting pressure on oil prices. It hits low of $58.15 and is currently trading around $58.78.
On the flip side, $58 will be acting as near term support and any break below will drag the commodity to the next level till $56.60/$54.50.
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).
It is good to sell on rallies around $59.25-30 with SL around $60.25 for the TP of $56.60.
