As we trudge through the era of micro-blogging and social networking intertwined with current global market volatility, we must rely on technical analysis now more than ever. Below is a sneak peek into a 1 year continuation chart of WTI crude oil with support and resistance levels that are at the fore in regard to potential near term price direction.
For now, it appears the recently tested support level of $51 a barrel (7th time tested this year) is a good temporary bottom coupled with breakthroughs of the next 2 major resistance levels of $53.75 and $55.25. If WTI holds and closes above the speed resistance line of $55.25 for a few settlements, we should see $60.75 (mid-July recent high). If WTI cannot hold above the $55.25 level and the linear trend line of $56.09, then we shall continue our march towards an annual major support and low of $48.57 a barrel. But for now we await the APIs tonight and DOEs for any fundamental indications for the near term. But we should also keep in mind of the era of tweets, tweets, tweets that may influence prices going forward.