Global Growth Worries Weigh on Crude Oil Price as NFP is Awaited
WTI Crude oil prices are trading 0.17% higher today at $52.55 per barrel trying to stop eight consecutive red daily candles. Oil prices are searching for equilibrium after the dismal macro data from US, which increased investors fears about global slowdown. Crude oil price is also responsing to the resumption of production after the drone attacks against Saudi Arabia oil facilities on September 14.
Crude oil price rallied from the from August 7th low at $50.74 up to $63.30 amid the attacks. However, as the oil supply from Saudi Arabia has been restored step by step, the crude oil price has traded back to the levels seen before the attacks. Traders will focus today on Non-farm payrolls which are very important with expectations of between 145,000 and 175,000 new jobs created last month.
On the technical side, the bearish momentum is intact despite today’s rebound, as the crude oil price trades below all the major daily moving averages. On the upside, crude oil’s next resistance level stands at the daily high at 52.96, while more offers could emerge at the 200-day moving average at $55.73. Short positions in crude oil probably look safe as long as the price hovers below the 100-day moving average at $56.38. On the flipside, immediate support stands at the daily low of $52.26, followed by yesterday’s low at $51.00. If the price closes convincingly below yesterday’s low, it will pave the way for a move down to the August 7th low at $50.50. Overall, the bears are in control, and any move higher will probably be considered as a selling opportunity.