Crude Oil Drops Dragged by China's Exports

Crude oil is exchanged mostly bearish on Monday after weaker China's export data.

The Crude oil plummets 52.6 cents or 0.89% falling to $58.61 per barrel, and Brent oil drops 58.5 cents or 0.91%, easing to $63.63 per barrel.
 
Crude oil prices fall this Monday after China's export data fell for the fourth consecutive month. This situation caused concern among investors about the damage that the U.S.-China trade conflict could be causing.

In November, China's exports dropped by 1.1% compared to October, while the consensus of analysts expected an increase of 1%.

The increase in uncertainties stems from concerns about the realignment that could be taking place over the extended duration of the U.S.-China trade conflict.

Technical Overview

Crude oil, in its daily chart, reveals that its price continues moving in a consolidation structure as an ascending expanding triangle. At the same time, in the near-term, the price action runs in an ascending channel, which reached the $59.90 per barrel on December 06.

According to the Elliott wave theory, the triangle pattern is a corrective formation that follows a 3-3-3-3-3 sequence and brings the possibility of continuation of the previous movement.

The next chart shows the oil in its 8-hour range rejecting down the upper line of the ascending channel. However, the sideways movement still makes us suspect that the market's participants are undecided concerning the next path.

The 2-hour chart reveals the possibility of a limited bullish continuation in the short-term. The price action could drive to Crude oil to visit the zone of September's high.

In summary, despite the short-term structure reveals the probability of a new bullish movement, our long-term vision still expect a further decline. 

However, the extension of the consolidation sequence started in the half of June 2019, which still is in progress, makes us expect a limited drop, probably to $50 per barrel as a psychological level.

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