WTI Crude Oil correction after reaching record highs

WTI Crude Oil correction after reaching record highs. Prices for WTI Crude Oil show a slight decrease, correcting after a strong growth the day before, which led to an update of record highs. Quotations continue to be supported by fears of supply disruptions, which are only intensifying as tensions grow in Eastern Europe and the Middle East.

In turn, pressure on the instrument on Wednesday was exerted by a published report from the US Department of Energy, according to which oil product inventories last week increased by 2.38M barrels to 416.19M barrels. Over the past period, the growth rate was 0.515M barrels, while the forecasts even suggested a decrease of 0.728M barrels.

Support and resistance

Bollinger Bands in D1 chart demonstrate the uptrend. The price range is narrowing, pointing at the ambiguous nature of trading in the short term. MACD histogram is slightly growing keeping a weak buy signal (located above the signal line). Stochastic is located in close proximity to its highs, which points to the risk of the overbought instruments in the ultra-short-term.

Existing long positions should be kept in the short and/or ultra-short-term until the signals from technical indicators clear up.

Resistance levels: 86.63, 88.00, 89.00.

Support levels: 85.00, 84.00, 82.50, 81.00.

WTI Crude Oil correction after reaching record highs

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