Technical Analysis

Oil continues to feel the pinch as July lows draw closer

Oil down by more than 3% below $66 currently

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It is shaping up to be a brutal start to the new week for oil, as price sinks further by more than 3% and is taking out some key technical levels along the way.

The latest drop sees oil fall below $66 and puts into focus the July lows @ $65.11-60.

That will be a pivotal point to watch for oil to see if price can establish a double-bottom or if sellers are going to push the agenda and secure a fresh leg lower.

The danger for oil right now is that from a technical perspective, a break below the July lows will leave little support through to the May low @ $61.58. That is roughly another 6.5% drop from current levels.

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