Oil Risks Pullback to $59 If Support Fails: Technical Analysis

Crude oil, struggling to sustain gains above $70 a barrel this month, faces a decline to $59 if support on technical charts fails in the coming days, National Australia Bank Ltd. said.

Oil is likely to continue drifting in a sideways pattern as traders seek to gauge the market’s short-term depth, according to Gordon Manning, a Sydney-based technical analyst. Futures, which touched a 10-month high of $75 a barrel Aug. 25, haven’t traded at $59 since mid-July.

“It’s trying to find a bit of a base,” Manning said in a telephone interview. “A close below $66 would easily take it lower.” (more)