Both oil price and DOW drop notably in early US session today. WTI is now back at around 39.50 after hitting as high as 40.97 yesterday. Our view is unchanged that price actions from 41.39 are forming a corrective pattern. The break of 39.79 minor support argues that the second leg might have completed. Further fall would now be seen back towards 36.87 support level.
DOW is currently trading down over -500 pts or at around -2%. It’s now getting more likely that price actions from 24843.18 are merely a sideway pattern, as the second wave in the pattern from 27580.21. It’s still a bit far but focus is back on 24971.03 support. Firm break there should extend the corrective fall from 27580.21 to 38.2% retracement at 24002.18.
