Oil prices tumbled sharply this week, together with some commodities, on as recession fears mounted. WTI crude oil price have briefly breached 100 handle and remains soft.
Technically, the fall in oil price is not a surprise. Decline from 124.12 is seen as the third leg of the corrective pattern from 131.82. For now, as long as 55 day EMA (now at 110.15) holds, more downside is expected to 93.47 support, and possibly through 55 week EMA (now at 91.22).
Nevertheless, strong support should be seen at around 85.92 resistance turned support, which is close to 100% projection of 131.82 to 94.37 from 124.12 at 85.77 to complete the correction.
