WTI crude oil’s sharp decline last week suggests short term topping at 66.49, on mild bearish divergence condition in daily MACD. Deeper retreat is in favor towards 55 day EMA (now at 60.41). But we’d expect strong support above 38.2% retracement of 42.05 to 66.49 at 57.15 to contain downside to bring rise resumption.
Rise from 42.05 is seen as a leg inside the sideway pattern from 77.06. Another rally is expected to 78.6% retracement of77.06 to 42.05 at 69.56, which is close to 70 handle, before reversal.
