WTI OIL – correction should find firm supports at $80 zone

WTI oil price is easing for the third day, correcting lower from new multi-week high ($84.50, the highest since mid-Apr).

Bulls lost traction after milder than expected impact of the hurricane on oil installations in the Gulf of Mexico, eased concerns about supply shortages and prompted traders to collect profits.

Current pullback is seen as correction of a larger uptrend from $72.46 (June 4 low) which should find firm ground at $80 zone (psychological / Fibo 38.2% of $72.46/$84.50 daily cloud top), to mark a healthy correction and offer better buying opportunities.

The notion is supported by overall bullish picture on daily chart and persisting supply concerns over the conflict in the Middle East.

Res: 82.50; 83.00; 84.03; 84.43
Sup: 81.66; 81.00; 80.00; 79.61