Oil retraces 100%

WTI oil remains very weak as shown on the daily chart and it has retraced 100% or it has made a parabolic retracement as it is also known to the 47.00 zone. The 47.00 zone may act as support for oil, but in case it breaks it, the bearish momentum may accelerate even more and WTI oil may reach the 44.78 level or the 44.00 level where it may find some support. To the upside, the 200 day EMA (blue line) at the 49.52 level could act as resistance along with the 50.00 level. Above the 50.00 level, any of the round number levels all the way to the 54.00 level may act as resistance, but the most important resistance is at the 55.20 level. The crude oil inventories data out of the US has shown a small reduction in the production of oil, but it has not been enough to cause the price of WTI oil to stop falling.