Oil prices go down in early trade on Tuesday after weakening Japanese industrial production data that were not a pushing factor in the market. Traders had a rebound due to a rebound in oil demand, while the pandemic was relatively calm.

“The Japanese industrial production data released this morning may affect overnight turnover,” said Michael McCarthy, a strategist at CMC Markets.

Japan reported May industrial output fell 8.4% from the previous month, compared with a 5.6% decline in market forecasts.

Monday, based on strong growth in pending home sales in the United States, make the belief that global oil demand was steadily rising as major economies reopened after the shutdown. The economy door for a while to avoid the Coronavirus infection, while the Organization of Petroleum Exporting Countries (OPEC) and its ally, OPEC +, abide by their commitment to reduce oil production.

Bulls is looking for further signs of a rebound in demand data as a result of the US Oil Institute’s industry group and the US government on Wednesday.

Analysts expect US crude oil inventories to drop from a record last week and gasoline futures for the third straight week.

Pivot point: 39

Resistance1:​ ​ 39.50         Support 1:​ ​    38.50

Resistance2:​  ​40              Support 2:​ ​ ​  38

Resistance3:​  ​40.50        Support 3:​    ​37.50

Today’s oil Signals:

Traders should sell oil: 39.50, Set Take Profit: 38, Stop loss: 41.

Traders should buy oil: 37.50, Set Take Profit: 41, Stop loss: 36.

Analyzed by:

Ms. Van Sreytouch (Michelle), Independent Analyst