OILX - WTI Weekly: Financialization Strikes Again As Historic Collapse Unfolds To 6.50s Where Major Support Formed
In this article, we examine the significant weekly order flow and market structure developments driving WTI price action.
As noted in last week’s WTI Weekly, the primary expectation for this week was for price discovery higher, barring failure of 22.04s as support. This expectation did not play out as the key support area, 22.04s, failed early in Tuesday’s auction. An aggressive sell-side breakdown then developed through major support, 20s, driving price aggressively lower to 6.50s where buying interest emerged amidst large buy excess, halting the selloff. Aggressive re-pricing higher developed to 18.25s in Thursday’s