The Brent crude has retreated from its 4-month highs as worries grow that global slowdown could spill over demand. In the meantime, the US has downplayed the likelihood of a quick trade deal with China, which means the oil price might stay in defensive before the weekend kicks in. On the supply side, output reduction from the OPEC+ club offers enough buffer for a price drop. We could expect the correction to be contained within a reasonable range.
On the technical side, the crude has met stiff selling pressures at 68.40. The price is now testing the immediate support of 61.70. 67.85 is a key resistance for the rally to resume.
The sentiment-price correlation chart shows the sentiment gliding towards the neutral line. Daily news sentiment is moving higher and in 60% of the last 10 occurrences price has risen within 9 days.