Oil WTI (West Texas Intermediate) bearish set up
|Oil WTI (a crude oil primarily sourced from Texas and considered one of
the highest quality Oils in the world) moved into a corrective channel
which started on the 21st of April 2020. Subsequently filling the gap,
which was caused by an oversupply and shrinking demand for Oil seen
earlier this year.
Does this move higher mean Oil has seen the worst of its days and is on
the rise? No, research shows more lows are to come. U.S. Crude Oil
Inventories missed expectations on the 24th of June 2020 with shell
companies oversupplying the market.
The fundamentals are now supporting the technical side for a move lower
to retest the 32 level. A break and retest of channel support will
confirm the move lower.
A break of current highs at $41.16 will mean a test of the upper channel
were longs will be favored to around 48. The 61.8 Fibonacci retracement
of the move lower is at $44 which we can see as critical resistance.
Res:41.16; 44.00; 48.00
Sup:36.38; 32.00; 30.00
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