WTI Oil is down more than -20% since the October High. The fundamentals over the new Omicron COVID variant have undoubtedly accelerated this but technically this is a much needed correction following the big rally of August - October.
My last update on WTI was the following, where I pointed out the upcoming rejection on the 1D MA50 (blue trend-line):
The 1D RSI touched its multi-month Support Zone and even though a slightly lower level is technically possible (-23.50% would be within the technical limits of the 9 month Bullish Megaphone pattern), the current levels already represent an ideal buy opportunity for the long-term.
Our firm's thesis is that the rebound that will follow will target the 0.5 Fibonacci level (73.50) on the short-term, followed by the 0.382 (76.30) on the medium-term. The long-term lies on October's 85.40 High and potentially beyond (based on the geopolitics at the time can be reviewed).