WTI crude oil drops notably today after Trump’s tweet. He said “Oil prices getting too high. OPEC, please relax and take it easy. World cannot take a price hike – fragile!”
With today’s sharp fall, WTI should have formed a short term top at 57.83. Focus is now immediately on 4 hour 55 EMA (now at 56.06). Sustained break there should at least bring deeper fall to trend line support (now at 54.48).
In the bigger, rise from 42.05 is seen as a corrective move. Hence, strong resistance will likely be seen around 61.8% projection of 42.05 to 55.85 from 51.49 at 60.01 to limit upside. That is is actually close to 50% retracement of 77.06 to 42.05 at 59.55. 55 week EMA (now at 59.60) is also in proximity.
