The Baker Hughes oil rigs in the USA rise for second straight week to 793 from 789 the previous week, analyst forecasts was for 785 rigs. The price of crude didn’t react to the news but as we approach the closing bell the price has moved to daily low at 58.28 down 1.65 percent for the day.
The bullish momentum in oil price remains as the price holds the June 21 low of $56.62, as Alejandro wrote in his analysis earlier “WTI Crude Oil Bull Trend, Watch These Levels”. I expect first resistance for the black gold at 59.80 today high, while next resistance stands at 61.30 the high from May 23rd. On the downside immediate support stands at 56.12 the 150 day moving average and if the price breaks below, the selloff will intensify and we might test the 20 day moving average at 54.75. Oil traders around the globe await the OPEC’s meeting on production next week that will add volatility to oil price, and perhaps that is the reason for the selloff in the final trading hours of the week as traders cut their exposure to oil.Don’t miss a beat! Follow us on Twitter.