Crude: Upside momentum is waning

The oil price was down again on Wednesday morning in the European session, falling for a third straight day on concerns over the rising number of COVID-19 cases in dampening the outlook for fuel demand.

China National Petroleum Corp. estimates that 5% of worldwide short-term oil demand may be at risk from the recent outbreak in China, which has afflicted nearly half of China's 32 provinces.

In the bigger picture, from a daily time frame, the oil has been trading in an uptrend since November 2020. However, the price action continues to look bearish even after offsetting almost all of its panic "Delta-dip" in the last two weeks, While bulls have not retaken July's record high at 76.38, making two consecutive lower highs in August. It shows upside momentum is waning that can open the path toward the support level at 67.50 and 65.

Alternatively, due to solid fundamentals and continued monetary policy easing, breaking above the resistance level of the last top at 73.88 may end the correction and back the buyers in control to keep up the 10-month uptrend.