Technical outlook:
WTI Crude has rallied early today, taking out initial resistance around $69.60 mark, as labelled on the 4H chart presented here. Since then, the commodity has pulled back to $67.67 intraday and is finally trading just below $68.50 mark as of writing. Bears could remain poised to drag prices further lower towards $66.50 and $65.00 levels before bulls are back.
WTI Crude's recent rally between $61.70 and $69.60 seems to be complete after taking out resistance. Ideally, the above rally should be retraced, producing a corrective drop towards $65.00 mark, which is close to fibonacci 0.618 levels of the above. After the short-term dip, the commodity could resume its rally towards $74.00 levels.
Going further, a break above $74.20 resistance would be further encouraging to bulls. But a bearish reversal fro $71.00/50 also remains possible as fibonacci 0.618 retracement of the entire drop between $77.00 and $61.70 converges with trend line.
Trading plan:
Potential for a drop towards $65, against $70 in the near term.
Good luck!
