Oil Erases Early Losses, Touches $46.00 Level
WTI crude oil
futures erased all of its early losses to move back towards $46.00
mark. The commodity is currently trading near $45.95, with some marginal
gain from its Friday's close of $45.92.
On Friday, crude oil
gave up its gains from $46.75 to close absolutely flat from Thursday's
level. On Monday prices dropped back to Friday's low but broad USD
weakness continues to extend support at lower levels, helping prices to
recover early losses to trade absolutely flat.
During the US session, investors would try and seek direction from a key gauge of US manufacturing sector, ISM manufacturing PMI
Technical levels to watch
Daily
RSI reading just above 70.00 mark is indicating that the near-term
up-move might be entering overbought territory and could face technical
hurdle at higher levels.
However, a move back above $46.00
handle would increase the prospects of retesting Friday's high
resistance near $46.75 and a clear break-through $46.75 resistance level
would set the stage for a further up-move towards Nov. 2015 daily
closing high level resistance near $47.50-60 area.
Meanwhile on
the downside, weakness below Friday's low support near $45.50-40 area
could drag the commodity back towards $45.00 psychological mark support.
Only a convincing break below $45.00 would now be considered as the
onset of near-term corrective move for the commodity.
