WTI Crude spiked down to November lows at 9286 & bounced sharply from 9251. We are now showing signs of a bottoming process so the downside may be more limited. Short term trend line resistance at 9430 but above here we could reach as far as 9480/90.
We will be getting overbought short term at this stage but if we continue higher look for a selling opportunity at 9535/70. Back below 9400 is more negative & sees 9360, possibly 9320. Below 9285 risks a retest of 9255/50. This should hold the downside but below meets excellent support at 9165/35 for a buying opportunity & an expected end to the 2 month correction.
Weekly outlook: The 200 week moving average & 17 month trend line support at 91.90/70 offers a buying opportunity & a low for the 2 month correction expected. A daily close above 96.00 is more positive & could target strong resistance at 98.70/70.