WTI crude oil drops sharply today and it’s back below 60 handle. It’s weighed down by renewed concerns over return to lockdown in Europe, as well as slow vaccine roll outs.
Nevertheless, WTI is still holding above last week’s low at 58.31 for now. We’d continue to wait and see if it could defend 55 day EMA (now at 58.23) for the second time. Rebound from the current level will maintain near term bullishness, for extending medium term up trend through 65.43 structural resistance.
However, sustained break of the 55 day EMA will indicate that WTI is in a medium term correction. Deeper fall should be seen to 38.2% retracement of 33.50 to 67.83 at 54.71 at least, before the correction completes.
