themarketzone

Oil may bounce from this level - but for a short while

NYMEX:CL1!   Light Crude Oil Futures
Oil may bounce as it just hit a minor weekly support zone but the chart shows that the upside potential is very limited. 65-70$ is going to be a strong resistance with the 61.8 Fib (which will act as resistance once it broke down) and a weekly downtrend line.

A reach to the 78.6 here (near 50$) maybe inevitable.

A close above 60$ with a strong 4H or daily candle may confirm the short term pullback.