WTI crude oil back above 106, first leg of correction finished

#OPINIONLEADER#

WTI crude oil is back at 106 as rebound from 93.98 extends. Russia is showing no sign of stopping its invasion of Ukraine despite waves of sanctions and rounds of negotiations. Earlier this week, the International Energy Agency warned that 3 million barrels per day of Russia oil and products could be shut in from as early as six months.

Technically, a short term bottom should be formed at 93.98 in WTI. The fall from 131.82, as the first leg of a corrective pattern should have completed. Further rise should be seen to 38.2% retracement of 131.82 to 93.98 at 108.43 first. Firm break there will target 61.8% retracement at 117.36 and above.

Also, with notable support seen from 55 day EMA, the medium term outlook stays bullish. That is, larger up trend is still in favor to extend through 131.82 high. However, it would take a while, most likely with at least one more falling leg, before the corrective pattern from 131.82 completes.