WTI bulls eye upside correction from confluence of support
|- WTI meets a key technical support area full of influence.
- Bulls seek a correction back to test the 4-hour prior lows and expected resistance.
Spot WTI was 1.1% lower as the US dollar kept advancing following the Fed. It ended the day at the lows of $71.64 after falling from a high of $72.96.
The drop was in contrast to the futures markets earlier in the day. The prices were rising for a fifth consecutive day on Wednesday. WTI futures rose 3 cents to $72.15, after reaching $72.99, the highest since October 2018. Brent crude added 40 cents, or 0.5%, to hit $74.39 a barrel. However,
US refiners drew more crude inventories to ramp up activity and meet recovering demand which had been supporting prices ahead of the Fed.
Crude inventories fell by 7.4 million barrels in the week to June 11, the US Energy Information Administration said, as refining utilization rose to 92.6%, the highest since January 2020, before the pandemic hit. The inventory draw was stronger than expected.
WTI technical analysis
Meanwhile, the bulls are stepping in again and an old 4-hourly high. These highs near 71.75 would be expected to now act as support.
The area is reinforced by the confluence of the 61.8% Fibo of the prior 4-hourly bullish impulse and dynamic support.
Bulls can expect to ride a correction back into the closing lows in a 50% mean reversion of the prior bearish impulse.
However, should bears take control further, then this would expose the downside and leave the bull's stops vulnerable.
A 38.2% Fibo of the weekly bullish advance is located at 68.60.
A 50% mean reversion, of what has been three consecutive weekly bullish candles so far, is located at 67.30.
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