US Oil (WTI) dropped in the short term after reaching a resistance area. Actually, a temporary decline was somehow expected after the amazing rally started in November 2020.
Everyone’s wondering if the corrective phase will continue after the short-term rebound from 57.28, or the US Oil price will resume its major, long-term, uptrend.
Personally, I believe that the price action will bring confirmation soon.
US Oil Daily Chart!
WTI oil was rejected by the 66.58 – 65.62 resistance area. The false breakout and the retest have signaled a potential decline. Now is traded above the 23.6% retracement level and beyond the pivot point (58.98).
The price could challenge the 23.6% retracement level and the pivot point again before deciding what it will do in the upcoming period.
Today, the US is to release the Crude Oil Inventories data which will definitely have a big impact on the oil price.
Crude Oil Inventories Could Be Decisive!
The indicator could drop from 1.9M to -1.3M in the last week. Dropping in the negative territory could help the price to increase again.
Still, the increase could be only temporary, that’s why we need strong confirmation from the technical analysis.
The bias remains bullish even if the corrective phase will continue. Now is very important to identify where the decline, retreat ends to be able to go long again on the US oil price and catch the major uptrend.
If you want to get the next buying signal when the correction is over just subscribe to the VIP channel HERE
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