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(V2) Bearish Engulfing Candle Still In Play

WTI TECHS
  • RES 4: $108.07 - High Jun 29
  • RES 3: $105.00 - High Jul 5
  • RES 2: $99.75 - High Jul 29 and key resistance
  • RES 1: $94.22/97.66 - 50-day EMA / High Aug 30
  • PRICE: $88.98 @ 07:05 BST Sep 1
  • SUP 1: $88.27 - Low Aug 31
  • SUP 2: $85.37 - Low Aug 16 and the bear trigger
  • SUP 3: $84.10/00 - Low Mar 15 / Round number support
  • SUP 4: $81.88 - Low Feb 25

WTI futures reversed course Tuesday and the sharp sell-off threatens the recent bullish theme. A strong reversal pattern has appeared on the daily chart - a bearish engulfing candle on Tuesday. If correct, this pattern suggests potential for a strong sell-off near-term that exposes key support at $85.37, the Aug 16 low. Firm resistance has been defined at $97.66, Tuesday’s high, where a break is required to resume bullish activity.

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