USDWTI
Updated
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.
Note
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 daysNote
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.Note
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?Note
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
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