WTI oil finds support

Oil has been dropping or correcting to the downside after Russia and Saudi Arabia announced that they will raise their oil production to take advantage of the recent rally in crude prices. The news has caused the price of WTI oil to break below the 70.00 and reaches the 55 day EMA around the 67.49 level. After breaking below the 55 day EMA, the price of WTI oil drops to the 66.00 zone. Right now the price is consolidated or boxed between the 66.00 and the 67.49 from where it may head in any direction. To the upside, the 70.00 level could act as resistance, followed by the 72.00 from where it started to retrace. To the downside, below the 66.00 level, the price of WTI oil would have the road practically clear to drop to the 61.71 level and the 200 day EMA (blue line) could also act as support.