The US has been driving to push oil prices lower and they are succeeding, this correction should be short-lived, by the end of March we could see 48. US is increasing crude drilling and is the biggest supplier of oil to UK.
As per Fibonacci retracement and levels we have limited upside for oil, this is just a correction for the bearish movement we had from October to the end of December. Brent has broken the upward channel for now, so the bulls are fighting back, but it would seem 70 to be the maximum upside, from there we resume downhill movement with target about 48. The resistance area of 67,5-70,5 should a good area to open short positions.
As per Fibonacci retracement and levels we have limited upside for oil, this is just a correction for the bearish movement we had from October to the end of December. Brent has broken the upward channel for now, so the bulls are fighting back, but it would seem 70 to be the maximum upside, from there we resume downhill movement with target about 48. The resistance area of 67,5-70,5 should a good area to open short positions.
Comment:
Failure to break 0,618 Fib signals bears incoming. There could be one final push and then we start rapid downhill movement or start slowly from here.
Comment:
We had strong sell, but buyers quickly responded - if they have the liquidity they will drive the price higher to resistance and then it will still drop. 0,618 still valid resistance.