WTI crude oil jumps notably in Asian session today and it’s now back above 61 handle. With strong support seen from 4 hour 55 EMA, current rebound should be setting the stage for resumption of whole rise form 50.86, through 61.38 temporary top.
However, we’d reiterate our view that such choppy rise from 50.86 should be corrective in nature, as part of the pattern that started back at 66.49. At this point, we don’t expect We don’t expect strong pick up in upside momentum with the next move.
Indeed, WTI shouldn’t sustain above channel resistance for now and upside should be limited below 63.04 resistance. Meanwhile, break of 59.95 support should indicate short term topping and at least bring test on channel support (now at 56.83).
