Oil prices are trading lower for the third consecutive day as reports that Iran and the US could go back to the negotiations table have removed some risk off the table in the Middle East arena.
Crude oil is trading 2.85 percent lower at $55.20 having hit the daily low at 54.75. On the weekly chart a downtrend line has been confirmed and the scenario now is bearish. Shorts here are targeting the June low at 50 but it is wise to place a stop loss order at 56.76 the 150 day moving average. Global growth worries are bad news for crude oil, as the trade war tensions increase global trade sinks and we might see a selloff in oil as it happened in early June.The chart gets pretty ugly for crude also in the daily chart as today breached the last support of the 150 day moving average heading to 54.41 the low from June 20. Daily traders can open a short position targeting that price with a stop loss at 56.50.Don’t miss a beat! Follow us on Twitter.