Oil price ticked higher on Monday and holding within a narrow consolidation, following 1.8% drop on Friday, sparked by disappointing US jobs data.
Mild rise in early Monday came from a partial profit taking and signals about potential hurricane system developing above US Gulf.
Larger picture shows the oil price in a downtrend which accelerated on growing fears about global demand, due to weak economic data from the US and China, two biggest oil consumers and OPEC decision to start raising output from October, which offsets impact from geopolitical tensions.
Oil price was down over 7% last week, extending the latest bear-leg off $80.14 (Aug 12 lower top) and remaining unaffected by signals of US rate cut that usually boost oil demand.
Daily technical studies are in full bearish setup and reinforced by the latest 50/200DMA death cross, but oversold conditions suggest that bears may take a breather for limited correction before larger bears resume.
Broken psychological $70 level reverted to initial resistance, followed by former double bottom at $71.46/66 (Aug 5/21 lows) reinforced by falling 10DMA ($71.90) which should ideally cap upticks and keep larger bears intact.
Res: 69.03; 70.00; 70.79; 71.66.
Sup: 68.00; 67.15; 67.00; 66.79.
