Commodities Weekly (23 Apr ’17)

WTI Oil (CL) coming under pressureCrude Oil prices have not sustained the test of congestion around USD53.00.

The anticipated pullback is now underway, as short-term studies weaken. However, price action is weaker than expected, with a test of critical support at the USD47.01 low of March looking more likely as investors reduce exposure.

A close beneath here will confirm a more significant bear trend, as the fall from the USD55.24 high of January gains traction. Subsequent focus will then turn to the 45.35, (61.8%) Fibonacci retracement of the August-January rally.

Further slippage will open up the USD44.82 low of 29 November.

Resistance is at congestion around USD53.00 and extends to the USD53.76 high of 12 April. This area should cap any immediate bounce, as background readings also show signs of deterioration.

 

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