WTI crude oil turns weaker today as the recovery from 90.97 lost momentum ahead of 106.19 resistance. The selloff came on the back on gloomy economic outlook, as indicated by the poor PMI data from Eurozone and US released last week. There’s growing expectation that a global recession is inevitable as central banks move to tighten monetary policy to curb inflation.
Development in WTI suggests that fall from 124.12 is still in progress and further decline would be seen to 90.97 support and below. Current decline from 134.12 is seen as the third leg of the corrective pattern from 131.82. Deeper fall could be seen to 85.92 resistance turn support (100% projection of 131.82 to 93.47 from 124.12 at 85.77). Stronger support should be seen there to finally complete the pattern to bring sustainable rebound. This will remain the favored case as long as 106.19 resistance holds.
