Did you miss the opportunity to breakout the triangle pattern on WTI crude oil?
It is best to watch these Fibonacci retracement levels in case the price retests!
Crude Oil WTI (USOIL) 4 hours Chart by TradingView
It looks like crude oil has chosen a downward path on the triangle consolidation pattern we were watching last week!
Is the commodity heading for further losses from here?
Remember that directional biases and volatility in market prices are usually driven by fundamentals. If you haven’t done your homework on crude oil and the US dollar yet, it’s time to take a look at the economic calendar and stay up to date with the daily fundamental news!
The price stopped at $78.60 per barrel and then rose sharply over the weekend, suggesting that some bullish pressure may be in place. This could be enough to trigger a pullback to the previous triangle support, which is near the pivot point level ($80.02 per barrel) and a key psychological mark.
This interesting area also coincides with the 50% Fibonacci retracement level, so the confluence of these two areas could attract bears in the crude oil market and allow selling to resume.
The larger correction could reach the 61.8% Fibonacci level near R1 ($81.46/bbl) and the 200 SMA while the shallow pullback could already reach a ceiling at 38.2% Fibonacci, so watch out for reversal candles in those areas.
If any of the Fibonacci levels hold as resistance, crude oil could set its sights back towards the swing low or down to S1 ($77.15/bbl) as the 100 SMA is below the 200 SMA to confirm bearish sentiment.
How low do you think crude oil prices can go from here?