Oil Bearish Shutter Support 38.65

Without the economic data, crude oil trade is still dominated by the impact of bad news last week, weakening manufacturing sector in China and the increase in oil drilling activity in the US for a five-week streak. On the 1-hour chart, MACD is still bearish signaling the potential for long-term but stochastic and RSI is in the oversold area indicates the potential for short-term gains. If the decline in prices fails to penetrate the area nearest support 38.65, then the price could rise towards 40.15 resistance area nearby. The next resistance is at 40.85 and the key resistance area lies at 41.70 area.

If the price is consistent weaken and penetrate support at 38.65 area, then the price could potentially get an extra pressure to approach the 37.85 area before it could approach the 37.00 key support area.