Fibonacci can be very powerful in the oil market. It provides perspective on the type of move that is possible The increase from January 2016 to October 2018 was retraced a perfect 62% on Dec 26.
Oil is currently booming again after the good job report last Friday (increased demand), the start of US-China negotiation (expected but still) and Saudi Arabia's larger than expected cut in production (decreased supply). The price just passed the 24% level and things are wide-open for reaching the 38% in a few day level and then even higher, but probably not without a retracement.
Oil is currently booming again after the good job report last Friday (increased demand), the start of US-China negotiation (expected but still) and Saudi Arabia's larger than expected cut in production (decreased supply). The price just passed the 24% level and things are wide-open for reaching the 38% in a few day level and then even higher, but probably not without a retracement.
Kommentar:
The price has stalled around 61. I would expect a drift down to 38% ($58) or 50% retracement. Then a gradual push up to 38% ($64) as per the original plan in around ten trading days
Kommentar:
Still stalling at 61. Clearly 61-62 is an important resistance area. There is also the possibility of an inverted H&S formation. A close above 64 would make me worried.
Kommentar:
WTI and Brent are diverging. WTI is already at the level where one would consider the H&S pattern valid. Interesting situation. Will Brent catch up?
Kommentar:
We can forget about the H&S pattern in WTI and Brent for the moment. Instead, the 38% retracement is complete (especially in WTI - more watched by traders?). Oil is likely to go in the direction of S&P