WTI oil price fell over 1% on Friday as weak China’s data (Feb exports -20.7% vs -4.8% f/c, the biggest drop in three years) soured sentiment, adding to renewed fears about global growth slowdown that would likely impact oil demand and pressure oil prices. Fresh weakness pressures the lower boundary of past three-day congestion, when oil prices showed indecision on strong rejections at both sides. Negative signals are developing on daily chart, as indicators turn south and momentum is entering negative territory. Close below cracked 20SMA ($55.84) would add to negative signal, with extension below 30SMA ($55.11) which reinforces the floor of short-term $55.01/$57.85) to signal reversal. Strong US jobs data today would boost the dollar and add to negative outlook for the oil prices.
Res: 56.19, 56.49, 56.97, 57.17
Sup: 55.55, 55.01, 54.72, 54.54