WTI Crude: Strong Resistance At 4420/30
Jason Sen | Jun 22, 2017 02:29AM ET
WTI Crude did exactly what I said it would as we shot higher to strong resistance at 4420/30 and topped exactly here. Shorts worked perfectly as we warned bears are still in full control and prices collapsed again to the November low target at 4230/20.
We wrote: However in such severely oversold conditions the downside is likely to be more limited at this stage - we bottomed just 15 tick below. Severely oversold of course but I cannot suggest longs in such a trend, without buy signals (although it is tempting to have a punt). A recovery targets 4290/4300 but resistance at 4355/65 could hold. However if we continue higher look for a selling opportunity at 4440/50, with stops above 4485.
We could start to trade sideways to ease oversold conditions but a break lower cannot be ruled out in the bear trend targeting 4185/80, 4145/40 and perhaps as far as 4151/10.
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