WTI Crude Oil (current price: $42.05)
The most traded commodity surged higher again on Wednesday and it’s now trading above the crucial $41.25 support/resistance line after hitting a low near $39 earlier on this week. The Black Gold rose back above the 200-day MA as we expected after declining more than 20% since its June high. WTI Crude is now possibly headed for the upper boundary of the current declining trend channel, which coincides with a strong resistance level near $44.
Our assessment: Oil still faces rough fundamentals, but the technical situation might mean that further upside is ahead in this current correction.
