WTI crude dipped after the EIA reported an increase in US inventories.
The rally has met stiff selling pressure near July’s high (77.00). The RSI’s bearish divergence signaled a halt in the upward momentum.
Then a combination of profit-taking and fresh selling has pushed the price below the first support at 75.20. A bearish MA cross also points to a U-turn.
A pullback is necessary to let the bulls catch their breath. The resistance-turned-support at 73.00 would be a key level to keep the sentiment unscathed.
