- Crude oil is correcting the climactic sell-off of Wednesday and as expected the pullback reached 70.49, only 4 ticks away from 70.53, which was the scenario in case WTI broke above $71.00 a barrel.
- Now that bulls have reclaimed 70.00, crude oil is now deciding whether to extend the consolidation up towards 71.19 or resuming the bear trend.
- Since the sell-off was climactic and the bear follow-through this Thursday lacked conviction, odds favor at least a test of the lower channel trendline; which could initially push the price toward the 71.00-71.19 area. Support is seen near 70.00 and 69.44 in the short-term, however a strong breakout below would open the gates to more losses.
Crude oil 15-minute chart
Spot rate: 70.30
Relative change: -0.37%
Trend: Bearish / bull correction
Resistance 1: 70.53 May 24 low
Resistance 2: 71.19 May 23 low
Resistance 3: 72.25 last week’s low
Resistance 4: 72.83 June 27 swing high
Resistance 5: 72.53 July 5 low
Resistance 6: 73.00 figure
Support 1: 70.00 figure
Support 2: 69.44 June 25 high
Support 3: 69.00 figure
Support 4: 68.30 demand level
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.