WTI Crude Now Forming Bottom Of Its 3 Month Correction
Jason Sen | Nov 21, 2013 06:19AM ET
WTI Crude January should struggle to make gains again today with 9425/9450 likely to cap. Only a break above 9455 turns the outlook more positive and can target 9535/40, possibly as far as 9500/10.
We are close to testing November lows at 9317 for the January contract but be aware that we do appear to be in a process of forming a bottom for the 3 month correction. Failure to hold 9300 today is a realistic possibility and could lead to a test of the 9265/45 area. With the bottoming process, this area could mark the low for the week. However a break lower cannot be ruled out and could target excellent support at 9200/75 for a buying opportunity and an end to the correction.
Weekly outlook: The 200 week moving average and 17 month trend line support at 9190/70 offers a buying opportunity and a low for the 2 month correction expected. A daily close above 9600 is more positive and could target strong resistance at 9870/70.
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