Chart of the day - OIL.WTI (09.09.2021)

Upward correction on OIL.WTI was halted at the downward trendline last week. Price pulled back later on but bulls managed to find support at the zone ranging around 38.2% retracement of the downward impulse launched in early-July ($67.60 area). Subsequent upward move pushed the price towards the 50% retracement at around $69.60. A pullback from this area can be observed at press time and given no major near-term catalysts, OIL.WTI may be set to trade in a range marked with 38.2 and 50% retracements. Oil manages to more or less hold its ground amid big sell-off on the equity markets with ranges of moves being much smaller. Yesterday's API report singalled a smaller-than-expected draw in oil inventories and traders will look for confirmation in today's DOE report (4:00 pm BST). However, DOE reports failed to trigger big price moves recently and the situation may repeat today. If this is the case, traders should wait for a break above the 50% retracement or below the 38.2% retracement in order to determine the direction of the next big move. Break above the 50% retracement and a downward trendline that lies slightly above may hint at a trend reversal.

Source: xStation5