WTI CRUDE OIL

The chart above shows the continuous contract for Light Crude Oil. 200 day moving average and last 6 month’s downward trend (green line) are both strong resistance at $93 level. Light Crude formed a bearish wedge that could give way to another leg of sell-off towards $70-$75 range. Rebound has been weak and choppy which a clear pullback to the previously broken 200 day moving average. Unless we see a sharp recovery above $93 level we should expect lower prices on crude oil.