WTI Crude Oil (current price: $54.10)
Oil started the day in a bearish fashion after the strong Tuesday session. The crucial commodity got lower after approaching the long-term highs near the $55 level. Volatility increased during the last two sessions, after a very calm period for WTI Crude. The flat day in global stocks weighed on oil on Wednesday, but the late-day decline in the Dollar helped a slight correction towards the end of the session. Oil is still trading in the dominant flag consolidation pattern after yesterday’s reversal.
Our assessment: Oil failed to break-out above its long-term highs this week. The long-term picture is still neutral with strong support found at the $52 level.
