Crude Oil WTI Technical Analysis: Climactic sell-off sees bulls defending the $70.00 figure

  • 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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