Oil prices received also received a boost from as a key manufacturing report disappointed. The ISM Manufacturing PMI. The index dipped to 48.1, down from 48.3 pts. Analysts had expected the index to improve to 49.2. This marked the fourth straight release below the 50-level, pointing to ongoing contraction in the manufacturing sector.
Crude was in a consolidation pattern throughout last week, but showed a strong downward breakout on Friday. On the downside, we find support at 55.00, followed by support at 54.50. On the upside, the 200-EMA and 50-EMA lines remain relevant and are additional barriers against upward movement. The 50-EMA is currently at 56.29 and is closely followed by a resistance line at 56.50. Next is resistance from the 200-EMA at 57.78.