WTI trading at $96.95/bbl

Crude oil’s reversal from a fresh high at 98.22 extended losses through the 96.50 support, only to find a footstep at 95.90, where the basing attempt is evident on a strong recovery above 96.50. According to Slobodan Drvenica, an analyst at Windsor Brokers Ltd., “The current action could be seen as corrective, while the 97.00/30 (50% / 61.8% of 98.22/95.90) slide should stay intact, as strong bearish momentum is indicated by yesterday’s long red candle that followed last Friday’s Doji.”

In addition, “a reversal under the latter barriers, would keep the risk of a lower top and fresh weakness in play, while a slide below 95.90 would open key supports at 95.50/00. Conversely, a lift above 97.30 would improve the near-term structure and signal a higher low formation, though a daily close above 97.70 is ultimately required to re-focus upside barriers at 98.22/27 (30 January 2013 / 23 August 2012 highs) and 98.54 (Fib 61.8% expansion of the wave from 84.05).” Drvenica notes.
At the time of writing, WTI crude has settled in the region of USD $96.95 Tuesday.