(G2) Bounce Considered Corrective

• RES 4: $77.59 - High Nov 26
• RES 3: $74.54 - 61.8% retracement of the Oct - Dec sell-off
• RES 2: $73.06/13 - 50-day EMA / High Dec 9
• RES 1: $71.77 - Intraday high
• PRICE: $71.22 @ 07:13 GMT Dec 22
• SUP 1: $68.56/66.12 - Low Dec 21 / Low Dec 20
• SUP 2: $65.45 - Low Dec 3
• SUP 3: $62.26 - Low Dec 2 and the bear trigger
• SUP 4: $60.52 - Low Aug 20 and a key support

WTI futures have recovered from Monday’s low of $66.12. Despite the recovery, a bearish threat remains present. The recent move lower has resulted in a breach of support at $69.21 and this signals scope for a sell-off towards $65.45, the Dec 3 low and more importantly towards the key support at $62.26, the Dec 2 low. On the upside, key near-term resistance is seen at $73.13, the Dec 9 high and is just above the 50-day EMA at $73.06.