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I spy with my eye a possible support for WTI!

WTI crude oil’s downtrend is hitting a snag at $93 these days.

Will it lead to a bounce or a downside breakout this week?

WTI Crude Oil: 4-Hour

WTI Crude Oil 4-hour Chart

WTI Crude Oil 4-hour Chart

WTI crude oil prices have been falling since mid-June when the commodity hit a resistance at the $124.00 zone.

Fast forward a few weeks and now WTI is trading inside a descending channel and respecting the 100 and 200 SMA dynamic resistance lines on the 4-hour time frame.

What makes the chart even more interesting today is that price is stalling its downtrend near $93.00, which lines up with a mid-channel support and a key area of interest since mid-February.

Will $93.00 hold for another day? Or will we see a downside breakout?

Worse-than-expected PMI reports from around the world got traders worrying about a slowdowns in global demand and growth.

And then there are whispers that Saudi Arabia might push for an oil production increase when it meets with other OPEC+ members later this week.

If traders continue to worry about global growth, or if increased oil production prospects continue to weigh on crude oil prices, then we could see WTI drop to July’s lows or even new lows below $90.00.

However, if OPEC+ friends say “Not today, Saudi!” to oil production increases, or markets price in risk-friendly news updates, then WTI could bounce from its current levels and retest the $100.00 zone cloer to the 100 SMA and channel resistance.

What do you think? How will WTI traders react to the $93.00 support retest?

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