- 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%
High: 71.20
Low: 69.21
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
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