WTI Oil – Correction Expected to Find Firm Support Around $80 Zone

WTI oil prices are easing for the third consecutive day, correcting lower from a new multi-week high of $84.50, the highest level since mid-April.

Bulls lost traction after the hurricane’s milder-than-expected impact on oil installations in the Gulf of Mexico eased supply shortage concerns and prompted traders to take profits.

The current pullback is viewed as a correction within the larger uptrend from the June 4 low of $72.46, expected to find firm support around the $80 zone (psychological level and the 38.2% Fibonacci retracement of $72.46 to $84.50, aligning with the daily cloud top). This would indicate a healthy correction and offer better buying opportunities.

This outlook is supported by the overall bullish picture on the daily chart and ongoing supply concerns due to the conflict in the Middle East.

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