WTI.OIL for most of the year moved peacefully up creating an upward correction in relation to the earlier declines. As a result of the recent rejection of the resistance level around 52.00 for the last three weeks we observed dynamic drops, resulting that market overcame a trend line running from the beginning of this year increases.
We are now in the vicinity of local support 43.00, which defeated could pave the way for further declines in the vicinity of 39.00 or even this year’s lows.
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Looking at the daily chart it is worth noting that the present support coincides with two very important Fibonacci levels:
- 38.2% Fibonacci correction of the whole, lasting from the beginning of the year growth
- 70.7% Fibonacci correction of the ongoing since early August growth impulse.
WTI.OIL Daily
This Fibo cluster can be a very strong support, and if in the near future will demand make a strong reaction rejecting the current zone, then we could expect a bullish correction and re-test of the recently defeated upward trend line.
