During last three sessions the price was rising and today’s session is also under bulls’ control. Situation looked completely different at the beginning of August. Then, the price broke support at 42.40 after almost two months of declines. OIL reacted on next support 41.50 and it caused rebound. The price has been moving up ever since.
Currently, it is very hard to say if this movement is correction in downtrend or maybe it is returned to previous uptrend. Entire downward movement which started in June reached 38.2% Fibonacci retracement. Due to this, the minimum range of was completed. On the other hand, the price has reached already to the first resistance at 44.50 and next resistance is also near at 46.00 level.
Possible scenario for OIL:
The price may return to declines and if demand is strong enough, the bottom from the beginning of August shouldn’t be deepened and oil will back to uptrend.
