WTI oil continues to trade below the mid-term upwards moving trendline, drawn from the lows of the 31st of August last year. This could be seen as bearish sign for now, but one should not forget that today’s OPEC meeting could bring volatility into this commodity and we could see some big moves. We prefer to take the neutral position for now and keep monitoring the key levels.
As mentioned above, WTI oil is still below the aforementioned mid-term trendline, which could continue acting as a good area of resistance. If the commodity starts selling off again and the price starts breaking the 65.75 zone, then we could start targeting the 64.20 mark. After that, the “black gold” could continue falling towards the Monday’s lows at around 63.30 level. A break lower could open the door for a test of the 61.80 zone, where slightly below that, runs the longer-term upwards moving trendline, taken from the 21st of June 2017, which could potentially slowdown the price from dropping.
On the other hand, a strong push up through the 66.85 level and a break back above the mid-term upwards moving trendline could interest more bulls to join in the action and drive WTI towards the 68.70 level. If that level does not hold, then a move above it could open the path towards the 70.45 area.
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