Oil holding steady around $46.00 handle

WTI crude oil held steady on Monday and traded in a narrow band with slightly negative bias, just below $46.00 mark, on easing concerns over the military coup in Turkey.

On Friday, the black gold got a boost from in-line with estimates Chinese second quarter GDP print and stronger-than-expected US retail sales / industrial production data that receded fears of China-led global economic slowdown. 

Moreover, concerns that the military coup in Turkey could hinder flow through Turkish ports extended further support to the commodity. 

The bullish momentum, however, was capped as continuous rise in the number of active oil rigs in the US continued to fuel worries of a global supply glut. According to the data released on Friday from industry group Baker Hughes, US rig counts ticked up to its highest number since April and was seen weighing on oil trader sentiment. 

Technical levels to watch

For any further bullish traction, the commodity needs to sustain its move above $46.50-60 immediate resistance, above which the momentum could get extended towards 50-day SMA resistance near $48.00 handle. Intermediate resistance is pegged near $47.25-30 region.

On the flip side, weakness below $45.50 might continue to find support near $45.00 psychological mark. A convincing break below $45.00 mark now seems to drag it further towards 100-day SMA strong support near $44.00 round figure mark.