FxWirePro: WTI crude likely to correct towards $61.9 per barrel

After reaching $66.6 per barrel last week, which was the highest price level for the North American oil benchmark since November 2014, WTI has been correcting and is currently trading at $64.8 per barrel. The WTI benchmark has reached our interim target of $65 per barrel.

While the bigger trend remains bullish, we suspect that the benchmark is likely to go for a correction. The increasing production in the United States, which according to the United States’ Energy Information Administration (EIA) reached 10 million barrels per day in January this year, is likely to weigh more on the North American benchmark than the global benchmark Brent.

Trade idea:

Sell WTI at the current priced of $64.8 per barrel targeting $61.9 per barrel in the short term. The stop loss should be kept at $66.6 per barrel. Do note that the bigger trend is still bullish and this is a call based on correction and final bullish target of $68 has not been achieved yet.