WTI oil price is entering corrective phase after a sharp fall

Bears are taking a breather after the latest bearish acceleration in past three days (oil price was down 5%) deflated by easing tensions in the Middle East and rise in US crude stocks (API report).

Oversold daily studies and Tenkan-Kijun-sen turned sideways, suggesting that bears are running out of steam, which may prompt traders for a partial profit-taking.

The notion is supported by the fact that oil price has repeatedly failed to register a daily close below June 4 low ($72.46).

This marks solid support, and another bounce may occur, following a triple failure in early August.

Upticks face initial resistances at $74.00/33, followed by $75.00/44, with $76.00 zone (converged 10/20DMA’s / 4-hr Ichimoku cloud base) expected to cap and mark a healthy correction.

Eventual close below $72.46 pivot and $71.66 (Aug 5 spike low) to unmask psychological $70 support.

Res: 74.00; 74.33; 75.00; 75.44
Sup: 72.46; 72.19; 71.66; 71.00