Brent Crude – Chinese data and resumed Libyan output weigh on oil

• Chinese growth underwhelms
• Libya resumes production after brief outage
• Key technical support levels still below

Oil prices pulled back from last week’s highs today, weighed down by the weaker Chinese figures and reports of some Libyan outages being restored.

The numbers from the world’s second-largest economy are almost certainly the bigger factor here especially against the backdrop of sluggish growth around the globe.

Is the recovery already over?

It’s interesting that Brent rebounded around $78, where the price repeatedly ran into resistance in May and June. It also falls around the 100-day SMA which could be viewed as a bullish signal, despite the early week setback.

Brent Crude Daily

Source – OANDA on Trading View

If it can hold above this level, even a little lower, say $77, it could be viewed as a breakout confirmation move which in theory is a bullish signal.

That’s not to say a move below here would be a bearish move; it could prove to be of course but there are other potential support levels below.

The 61.8% Fibonacci retracement for example collides with the channel top and the 55-day simple moving average. A move below this could signal things have turned bearish once more.

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