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(X20) Sharp Rebound Signals Reversal

WTI TECHS
  • RES 4: $42.29 - 76.4% retracement of the Aug 26 - Sep 8 sell-off
  • RES 3: $41.72 - High Sep 18 and the short-term bull trigger
  • RES 2: $40.80 - High Sep 28
  • RES 1: $39.75 - 20-day EMA
  • PRICE: $39.33 @ 06:33 BST Oct 6
  • SUP 1: $36.58 - Low Sep 8 and the bear trigger
  • SUP 2: $35.54 - Low Jun 12
  • SUP 3: $34.24 - 50.0% retracement of the Apr - Aug rally
  • SUP 4: $33.14 - Low May 28

WTI futures rallied sharply higher yesterday. The climb signals a likely reversal of the downtrend that has dominated most recently since Sep 18. A reversal pattern defines yesterday's price action, a bullish engulfing candle line. The fact that this pattern unfolded just ahead of a key support at $36.58 reinforces the significance of the rebound. Scope is seen for a climb towards resistance at $40.80, Sep 28 high. Key support remains $36.58, Sep 8 low.

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