WTI Oil stuck at 38.2% Fibo

WTI Oil is having a tough time rising through $41.86 (38.2% of Feb low-June high) after having witnessed a technical correction in the previous two trading sessions.

Confluence of resistance @ $41.86

Prices failed to hold above strong resistance at $41.86 (38.2% Fibo + March 22 high) in the NY session yesterday. This is being followed by another failure to take out the strong confluence of resistance.

Technical recovery in oil gathered pace on Wednesday after the US government inventory report showed a drawdown in gasoline inventories. Moreover, drop in gasoline inventory overshadowed a rise in the oil inventory.

Traders await US Baker Hughes oil rig count figure, a rise in which has been a major reason for the drop in oil prices. Prices were last seen trading around $41.70/barrel.

US Oil Technical Levels

A breach of immediate hurdle at $41.86 (38.2% Fibo + March 22 high) would open doors for $42.48 (Apr 26 low). A violation there could yield $43.00 levels. On the other hand, a breakdown of support at $41.22 (Apr 13 low) would expose $40.55 (Apr 29 low), under which the psychological support at $40.00 could be put to test.