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6 Feb 2013
WTI trading at $96.01/bbl
A recovery in crude prices from yesterday’s low at 95.90 was rejected at 96.90 (previous high), subsequently easing towards the 96.00 handle. According to Slobodan Drvenica, an analyst at Windsor Brokers Ltd., “we the rally as corrective part of larger reversal from 98.22 (30 January peak). Weak near-term studies keep the downside in focus, with break below 95.90 seen as a trigger for extension towards key supports at 95.50 and the 95.00 breakpoint”.
As such, “a loss this region could open more significant correction of steep rally from 85.20 (11 December low) and expose 93.25 (Fib 38.2% of 85.20/98.22 rally). Conversely, a break above 97.00 is required to provide relief.” Drvenica adds. At the time of writing, WTI crude has settled in the region of USD $96.01 Wednesday.
As such, “a loss this region could open more significant correction of steep rally from 85.20 (11 December low) and expose 93.25 (Fib 38.2% of 85.20/98.22 rally). Conversely, a break above 97.00 is required to provide relief.” Drvenica adds. At the time of writing, WTI crude has settled in the region of USD $96.01 Wednesday.