Similar to last Wed, WTI bulls pulled the front month contract out of the collapse following the publication of the bearish EIA weekly status report this AM, conceding to give up essentially only the price drop from the overnight session.The price action on the 5-minute chart above reflects a textbook rising wedge with a symmetrical follow through target rise. 8040 represented significant resistence, and after failing to hold above that level in the last hour of the open session, the price retraced close to the 38.2 fibonacci of the ~7840 to 8040 rise.
7840 now represents support. Given the relative bullishness in the trade today, expect to see some consolidation at current levels, with the bears testing the 7840 level for weakness.