JStanleyFX

Crude resistance plays - now for Support to show its hand $CL

NYMEX:CL2!   CRUDE OIL FUTURES (CONTINUOUS: NEXT CONTRACT IN FRONT)
I had warned of a pullback in Crude in early-November. https://www.tradingview.com/chart/CL2!/X...

and this comes after a series of breakouts that I've been following on the long side, going back to May https://www.tradingview.com/chart/CL2!/U...

Earlier in November, WTI had run into a massive Fibonacci level and prices were very stretched. It was the type of trend that gets funny comments on Twitter if you try to fade. But, good resistance is good resistance, and that's precisely what's played out in WTI over the past month, with some help from a few bearish drivers like Covid variants.

At this point, prices are starting to test support at a prior resistance zone . This zone carved the highs for 2019, 2020 and for a few months earlier this year, 2021. I'm following this zone from 64.31-67.19, taken from a couple of longer-term fibonacci retracements. The topside of the zone was about a nickel off of last week's close 67.14 v/s 67.19.

I had just written an article that discusses how I'm looking to operate around this move. While this presents long-term support potential, the short-term trend is decisively beairsh, and with sellers taking out the 70 handle again this morning, it doesn't look like the low is in yet.

Key note - we're less than 2 days from the close of the month and the monthly bar is currently showing as a bearish engulf. If it closes that way, could be a rocky finish to the year for oil prices.
Comment: Link to article discussing near-term strategy in WTI https://www.dailyfx.com/forex/technical/...