Oil prices dip today on concern that the rapid spread of Omicron would push more countries back into restrictions, and hurt demand at least in the near future. That’s also in-line with overall risk-off sentiment in the markets.
WTI’s recovery from 62.90 was choked off after hitting 73.66 and it’s back below 69. For now, unless there will be any disastrous development, we’re seeing price actions from 85.92 high as development into a sideway consolidation pattern, in form a a three-wave flat, or a five-wave triangle. The range should be set inside 61.90/85.92.
In other words, we’re not expecting a break of 61.90 support even in case of further selloff. Break of 73.66 resistance will extend the rebound from 62.90. And even in this case, we’re not expecting a break of 85.92 high too.