crude oil woes

WTI Technical Analysis Report 7 July, 2021

• WTI reversed from resistance zone
• Likely to fall to support level 70.00

WTI recently reversed down from the resistance zone lying between the resistance level 75.00 the upper daily Bollinger Band. The downward reversal from this resistance zone created the daily Bearish Engulfing – which stopped the previous short-term impulse waves (iii) and 3, which belong to the intermediate impulse wave (3) from the middle of March.

Given the worsening risk sentiment as seen across the oil markets today on worries the demand prospects can be damaged due to the widespread delta variant – WTI can be expected to fall further toward the next round support level 70.00 (which is the target price for the completion of the active correction (ii)), coinciding with the lower daily Bollinger Band.

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