NY Harbor ULSD Futures (HO1!), H4 Potential for Bearish Momentum

NYMEX:HO1!   NY Harbor ULSD Futures
Type : Bearish Momentum
Resistance : 3.7979
Pivot: 3.5345
Support : 3.1892

Preferred Case: On the H4, with RSI moving along the descending trendline and price moving along the descending trendline, we have a bearish bias that price will drop to the pivot at 3.5345 where the 61.8% fibonacci retracement and pullback support are. Once there is downside confirmation of price breaking pivot structure, we would expect bearish momentum to carry price to intermediate support at 3.3537 in line with swing low support and 61.8% fibonacci projection . Should price break intermediate support, we would have a bearish bias that price will drop to 1st support at 3.1892 where the swing low support, 127.2% fibonacci extension and -27.2% fibonacci expansion are.

Alternative scenario: Alternatively, price may rise to the 1st resistance at 3.7979 where the swing high resistance and 78.6% fibonacci projection are.

Fundamentals: The chance of further Federal Reserve rate increases has grown as a result of the US CPI data released overnight showing higher-than-anticipated inflation growth, raising the risk of a worldwide recession and giving us a bearish bias on the oil .

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