Crude oil corrected lower after hitting multi-year high at $76.9 per barrel to retest the $74 level. This downward move is due to the increase in WTI Crude oil inventories by 8M barrel from last week and by some reports that claim that Russia and Saudi Arabia have agreed to raise the production. The overall sentiment is still bullish on the black gold, however we will have to wait before we see the price breaking above the recent highs.
After hitting a multi-year high at $76.9, a level that have not been seen since November 2014, an anticipated correction in the prices has occurred after a strong divergence between the price and momentum happened. The price retreated towards the $74 level and the purple trend line and then bounced up with extreme oversold conditions. The price is currently hovering below the $75 level but it will continue to face negative pressure before bouncing back towards the $75.57 resistance level and that will be the level to focus on.
Support: 73 72.73
Resistance: 73.5 74.25