WTI crude oil traded lower on Wednesday, after hitting resistance at the round figure of 70.00. However, the slide was stopped near the 65.25 area, and then, WTI rebounded somewhat. Overall, the black liquid remains below the downside resistance line taken from the high of November 1st, and thus, even if we see some further advances, we will class them as corrective ones.
Indeed, we could see the current rebound extending towards the psychological round figure of 70.00 again, from where the bears may recharge and push for another slide near the 65.25 zone. If they succeed in overcoming that territory as well, then we could see them pushing towards the 62.00 mark, defined as a support by the low of August 20th.
Shifting attention to our short-term oscillators, we see that the RSI rebounded from near its 30 line, while the MACD, although negative, lies above its trigger line. Both indicators detect slowing downside speed and support the notion for the current rebound to extend for a while more, before the next negative leg, perhaps to test once again the 70.00 area.
We would start examining a larger upside correction upon a break above 70.00. This may allow advances towards the 73.60 hurdle, marked by the high of November 29th, the break of which could extend the recovery towards the 76.07 level, marked by the inside swing low of November 23rd, or the downside resistance line taken from the peak of November 1st.
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