On the daily chart stock price of Oil.WTI (valuation based on futures contracts maturing in December 2016 ), we see a series of five long black candles, which pushed down price from around 50.00 by more than 5USD per barrel.
Will confluence of resistance levels stop it?
The decline began at the height of the peaks from June at 51.61, which was tested twice in the past month. This ultimately led to the depreciation which is testing currently 61.8% abolition of last growth movements from the period August-October:
If Fibonacci golden ratio was too weak argument for stopping the bear rally, just below the zone runs trend line connecting the HighLow from April this year. An additional reinforcement can also be the support zone, which is defined by Lows from September (43.50-42.90).
If even here the supply is too strong, Oil.WTI can fall to 40.00,that is the area of August lows. The only hope for more optimism for bulls is the OPEC meeting scheduled for the end of November. If the OPEC representatives reach agreement with the non-aligned manufacturers to freeze output levels, then the pressure of oversupply melts, allowing rebound of prices of black gold.