After recording modest recovery gains in the past three trading days, crude oil lost its traction on Wednesday with the barrel of WTI falling below the $70 level and settling just under it. This break to the downside came after the weekly report published by the U.S. Energy Information Administration revealed that crude oil stockpiles rose by 6.5 million barrel from last week versus an expected 1.6 million barrels. On top of that, a broadly stronger greenback didn't allow Crude to make a meaningful recovery and on the other hand, the market ignored the impact of the damage on oil production caused by hurricane Michael in the gulf of Mexico.
Oil prices broke below the $70 level after breaking the long term purple trend line to downside. The RSI is pointing towards a huge divergence of the momentum with the price so a little pullback or a retest of the recently violated support levels at $70.5 and $71 are expected to occur.
Support: 73 72.73
Resistance: 73.5 74.25