WTI crude oil prices were trading flat on Monday after last week’s gains. The US administration announced fresh sanctions on Iran, but the market reaction was muted. Meanwhile, the UAE, Saudi Arabia, the UK, and the US issued a warning expressing grave concerns for rising tensions in the Middle East and specifically Iran.
Will Oil Correct Lower?
The commodity closed with a doji pattern for the second consecutive day near the resistance area of 57.50. The breach of the minor trend line indicates a possible downside correction in price. The initial support is seen at the 54.50 handle. If the bearish momentum picks up, oil prices could fall to the 54.50 level. Alternately, a reversal near the current levels could see further upside, pushing WTI to 59.50.
