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(G4) Corrective Cycle

WTI TECHS
  • RES 4: $82.64 - High Nov 3
  • RES 3: $79.67 - High Nov 30 and a key short-term resistance
  • RES 2: $76.14 - 50-day EMA
  • RES 1: $74.61 - High Dec 18
  • PRICE: $74.14 @ 07:19 GMT Dec 20
  • SUP 1: $67.98/07 - Low Dec 13 and the bear trigger / Low Jun 23
  • SUP 2: $65.24 - Low May 4 and a key support
  • SUP 3: $63.79 - 2.236 proj of the Sep 28 - Oct 6 - Oct 20 price swing
  • SUP 4: $60.00 - Round number support

Bearish conditions in WTI futures remain intact and recent gains appear to be a correction. Resistance to watch is $76.14, the 50-day EMA. Last week’s fresh trend low reinforces a bearish theme and the break of $69.08, Dec 7 low, confirms a resumption of the trend. This maintains the price sequence of lower lows and lower highs and note that MA studies are in a bear-mode position. A resumption of weakness would open $67.07, the Jun 23 low.

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