WTI crude oil is in free fall today, together with other risk markets. At this point, the decline from 85.92 is seen as a correction to rise from 61.90 only. Hence, we’d start to look for bottoming signal around 61.8% retracement of 61.90 to 85.92 at 71.07. This is slightly lower than medium term trend line at around 71.5.
However, in any case, break of 80.04 resistance is needed to indicate completion of the decline. Otherwise, further fall will remain in favor. Indeed, sustained break of 71.07 fibonacci level will argue that WTI is already correcting the long term up trend. In such case, even deeper fall would be seen towards 61.90 key structural support.
