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WTI trading at $97.74/bbl

The near-term price action in crude oil is expected to remain in a consolidative mode between the 97.82 and 98.00 levels, as a pullback from a fresh high at 98.22 found ground at 97.00/96.90 (previous highs and 50% of 95.47/98.22 upleg).

According to Slobodan Drvenica, an analyst at Windsor Brokers Ltd., “Weak hourly studies see the near-term tone negatively-aligned, however crude still maintains a positive 4h structure that is keeping the bulls afloat, as long at the 92.82 handle holds. In addition, a break to this region would open a further reversal towards 96.50 (Fib 61.8% and 96.00).”

Conversely, “a lift above session highs at 97.68 would brighten the immediate tone for a possible stretch towards 98.00/22, above which will signal a fresh extension of larger bulls from 84.05 (07 November low) and expose the psychological 99.00 resistance next.” Drvenica adds. At the time of writing, WTI crude has settled in the region of USD $97.74 Friday.

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