Oil Price Reaction To Weaker Economic Data From China

The weaker-than-expected economic data out of China overnight has put the kibosh on Oil prices, now probing up trendline support at 80.00, down $3.30 and 4% from Sunday eve's high at 83.30.

That said, from a technical perspective, Sep. Crude had climbed from its June Double Bottom Lows at 66.92/98 to 83.30 at the August 6 high, a gain of 24%, which certainly left the upmove ripe for a correction of some magnitude.

The magnitude of this pullback IS the key issue now within an otherwise very bullish larger-developing setup in the Oil sector. Key support resides in and around the June-August up trendline at 80.00, but if violated and sustained, my next lower key pullback support plateau is 78.30/60, which will represent an 8.4% pullback from where the next upleg could emerge... Last is 80.15 off of an intraday low at 79.97...

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