Category: Forex News

Crude Oil – Verification of Breakout?

By Published On: March 18, 20241.3 min readViews: 1920 Comments on Crude Oil – Verification of Breakout?

(…) crude oil futures reversed and moved lower earlier today, signaling that further deterioration is very likely (…)

As you see on the above chart, recent very short-term rally is very similar to the size of the upward move that we could observe just before the Mar. 1st peak was formed.

Therefore, it seems that even if the bulls decide to attack once again, the space for increase could be limited (at $81.81 the current upward move would be equal to the previous move) – not only from the ABCD formation point of view, but also from the Fibonacci extension perspective (at $81.91 [marked with the red horizontal line] there is 127.2% Fibonacci extension based on the recent Mar. declines).

Summing up, crude oil closed another day above the previous peak and the barrier of $80, but despite this positive development, Friday’s session started with the pro-declining gap, which continues to serve as the nearest resistance. Additionally, the technical picture (the nearest resistance zone, the similarity of the upward moves, the current position of the daily and weekly indicators, and the disappointing volume (not only daily, but also weekly) suggests that the space for further increases seems limited and a reversal is just around the corner.

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See you tomorrow.

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