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  • WTI is down to a prior resistance which could act as a support from which bulls  will seek to get long if it holds and price corrects.
  • However, the charts are in overbought territory and if price action respects the law of gravity, bulls could be squeezed out down to the rising wedge’s support.
  • Bears will then look for the price to buckle  below the 61.8 Fibo, at 63.70.
  • On a break there,  the 200-D SMA at 60.80 will then be exposed – Given how coiled the stochastics are across multiple time frames,  there is an overwhelming case for the downside.
  • However, should bulls commit here of even  within the rising wedge at any point in this correction, then the case for a test of 69.50 and the 70 psychological level remains on the cards.