Oil bounce, then new low
Oil is currently dropping on a lengthy RSI divergence - i'm expecting a bounce at the OTE retracement (half way between 0.618 and 0.786 fibs) or with less probability at the 0.786 fib.
Expecting resistance in the area between $31.60 (0.382 retracement of the $34.76 high) and $31.75 (previous support), which should cause a retest of the $27.50 low.
Expecting resistance in the area between $31.60 (0.382 retracement of the $34.76 high) and $31.75 (previous support), which should cause a retest of the $27.50 low.
Note
0.382 broken with next resistance at 0.618 fib area. A weakening US dollar overnight has made oil cheaper for non-US purchasers, but huge oversupply still exists...overall still bearish.
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.