- WTI fell to $75.50 and now the daily chart shows price breaking the trend line support.
- However, WTI is now correcting higher towards the $76.70 resistance.
- $77.70 is seen as a 61.8% ratio target.
Based on earlier analysis of the week, aiming for the $75.50 target area the same was reached in the opening window for New York stocks with increased volatility. Attention is now on the upside as bulls go in for the kill to wipe out buying liquidity with their sights set on Asian highs held by previous price imbalances. Targets are around $77.50 (50% mean reversion zone), $77.70 (Monday opening lows), and a 61.8% fibonacci retracement of the last push down around $78.80, as illustrate the following analysis.
WTI, previous analysis
It was suggested that“a correction in resistance could attract trapped longs out of losing or breakeven positions and subsequently shorts entering the market around the fibonacci correction of 38.2% could see a move out of consolidation below trapped volume and towards a 100% measured target towards $75.00 over the course of the next week.”
As illustrated, the price plunged into the target zone after a correction with shorts looking to enter at a premium. The subsequent move had fulfilled 100% of the measured move and $75.00 was lurking:
WTI H1 charts, previous analysis
Extended …
The areas in gray were price imbalances, while the red signal was a resistance area that confluenced with the 61.8% fibonacci retracement level near $78.50. Below, the trend was down.
In any case, the bears were looking for a target between $75.36 and $74.88 after the break of $75.50.
WTI Update
The price has reached resistance and a correction is underway.
WTI daily chart and M15
The daily chart shows price breaking trend line support but finding horizontal support and correcting. If this is the start of a daily correction, then $77.75 is in the offing for 61.8% momentum down.
On the 15-minute chart we can see a price imbalance between $77.18 and $78.04 for the bulls:
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
