- WTI bulls seeking upside correcting to test prior support.
- Traders focussed on the W-formation target, switch to the M-formation target.
The price corrected the prior daily bullish impulse and has reached the 61.8% Fibonacci retracement target of the range at $60.89 the low.
This is an area of confluence when considering the 5th April highs.
It was a typical outcome of the bearish W-formation on the daily chart.
At this juncture, the support would be expected to hold initial tests.
Bulls can target the M-formation’s neckline in the meantime.
However, a bullish extension target can be measured from the correction’s range which brings in a -272% target at 65.30 on the upside.
If, on the other hand, the prior support holds the bulls off, then there will be a focus on the downside again.