It looked like it was smooth sailing for WTI oil last week. But that was up until Friday, when the commodity got hit by heavy selling and slid down to close below the 64.20 level, marked by the recent lows in June. Overall, WTI oil continues to trade below the upwards moving trendline, drawn from the low of the 30th of August 2017. It seems that the commodity could be targeting the other, slightly longer-term trendline, running from the 20th of June 2017.
OUTLOOK (SCENARIO A / B)
For now, we remain sceptical on the upside scenario, so we will aim for lower levels. The next potential area of support to watch could be the 62.80 level, marked by the low of the 3rd of April. Below that level lies another quite important area of support at around 61.80 zone, which is near April’s lowest point. This area coincides with the aforementioned slightly longer-term trendline, which could slow down the price drop.
Alternatively, a strong reversal back up to the 65.60 zone could interest the bulls in jumping back into WTI oil, in order to drive it towards the previously mentioned upwards moving trendline, running from the lows of August last year. The level to watch around there could be the 66.85 area, marked by the highs of last week.
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