WTI crude oil falls notably in Asian session, following general risk-off sentiment. It’s reported that more than a dozen of buildings are now also under lockdown the largest district of Chaoyang in Beijing, China’s capital. That raised concerns that Beijing could be put under tough and continued lockdown like Shanghai soon, which would then weigh further on oil demand.
WTI crude oil is seen as in the fifth leg of a triangle corrective pattern which started at 131.82, back in early March. Deeper fall should be seen in the near term towards lower side of the pattern at 93.47. A breach of that level could be seen but it should be relatively brief, and contained above key support level at 85.92.
The main question is that after the corrective pattern completes, whether the next rally could break through 131.82 high. But in any case, the next rise should be the last in current up trend and should then set up a medium term corrective phase which lasts much longer.
