Current trend

Oil slips at the beginning of the week as investors await big events. The black gold consolidated near 80.00 during the Asian session supported by the return of Chinese business activities which signals optimism to boost energy consumption. Oil prices fell during the European session, as cautious sentiment looms ahead of the OPEC+ meeting, which is likely to keep the oil output policy unchanged on February 01 meeting.

Technical analysis

The black gold is consolidating above the middle Bollinger. The price is trading near 79.70. RSI is leaving the neutral zone giving further hope to buyers. MACD line is heading to crossover indicating a risk of downward reversal, but the downside appears limited. Buyers could look for a break above 80.70 to extend the move further toward 81.69 and open the door toward 83.36.  A breakthrough here will target 84.64. On the downside, sellers could look for a break of 78.94 to extend the move toward 78.11 and open the door toward 76.74. A breakthrough here will expose 76.03.

Key levels to watch from the upside 80.70, 81.69, 83.36, 84.64– from the downside 78.94, 78.11, 76.74, 76.03.