WTI dips below 61.8% Fibo level – What’s next?

Yesterday, the WTI crude oil prices dropped by more than 2%, slipping back from four-month highs as investors centered on the risk that emerging market issues and trade disputes could bend demand even as supply tightens. In addition to this, the supply issues increased due to data revealing that U.S. crude production plunged by 100k bpd (barrels per day) to 10.9 million bpd during the previous week.

The financial markets are a bit slow today, making it hard to find good signals. However, crude oil is supported above $68.45 and can continue its bullish momentum until $68.80. The violation of $68.80 is likely to lead the oil prices towards $69.50.

On the flip side, the bearish breakout of $68.45 can lead oil prices towards $67.45.