WTI falters around $70

CityIndex Broker Updated   
NYMEX:CL1!   Light Crude Oil Futures
Oil prices fell to a 15-month low as investors fretted over the potential for a financial meltdown. Whilst that is yet to fully materialise (or if it does at all), investors remain a little on edge - with news of the latest Hindenburg report accusing Block (SQ) of fraudulent activity not likely to quell fears.

WTI has manged to lift itself from its 15-month lows, yet volumes declined over this period to suggest the move was corrective. A bearish Pinbar also formed, which not only failed to test the $72.46 breakout level but also closed back below $70 and the December low. Also note that a bullish hammer has formed on the US dollar index (DXY).

- We're now waiting for a break of Wednesday's low to assume bearish continuation, with target zones made up of Fibonacci expansions and round numbers residing around $65 and $60 in focus.
- The bias remains bearish below $72.46, although yesterday's high can also be used if a tighter approach to risk management is preferred.
Trade closed manually:
We saw an initial move lower after the small Doji formed at resistance, yet bulls fought back to recoup losses on March 24th, leaving a bullish pinbar on the daily chart.


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