- WTI crude oil has started to weaken in earnest following its recent erosion of the 102.00 support. The slide lower has eroded the 50% retracement and 200 day ma at 98.92/98.58. Just below here we encounter the 96.22 55 week ma – which will essentially bring prices back to the middle of the range at circa 77.50-110.00 which has dominated for the past 2 years. This in turn protects the 200 week ma at 91.45.
- Provided that any rebounds remain capped by the downtrend and 55 day ma at 103.79/104.91, we will maintain a negative bias.
- Currently the Elliott wave count on the daily chart is suggesting that rallies will terminate around the downtrend and this current sell off will reach sub 90.00.
NYMEX Light Crude Oil Daily Continuation Chart
NYMEX Light Crude Oil – Weekly Chart
Market is reacting back to the 55 week ma at 96.22.