Oil price attempts rebound after yesterday's sell-off

6:21 PM July 20, 2021

Crude oil prices were under pressure today, despite a moderate rebound in global equity markets. The sentiment remains mixed - although the stock market and some commodities have started to recover, bond yields continue to decline. The main benchmark - yields on 10-year US bonds - fell even below 1.14% today!

However, after the US open, WTI was slightly gaining, bouncing from the intraday low. An interesting technical situation can be seen in the H4 interval, which reflects well what has happened in the market recently. Currently, the WTI is hovering around the level of $ 66.50 per barrel, which acted as an important resistance zone recently (price reactions marked with arrows). Currently, market participants may wonder which direction the oil prices are headed, as the situation does not look clear yet. The rebound from the daily lows at $ 65.00 (78.6% Fibonacci retracement of the bullish wave) looks optimistic. The current H4 candle suggests that the bulls are regaining control. The price is gradually approaching $ 67.00 a barrel. On the other hand, if sellers become more active, the aforementioned $65.00 level should act as a key support.

OIL.WTI, interval H4. Source: xStation5

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