Crude Oil hit Fibonacci level and the 1Y trendline
Crude Oil hit Fibonacci level and the 1Y trendline. Will it breakout here or will undergo a correction? Below are few observations
1. 1Y trendline is hit for the 4th time in a time cyclic pattern perfectly. This is also the 1.618 Fib level for the Jan '20 - Apr '20 swing
2. Will the trendline breakdown happen this time? May not be as:
- RSI negative divergence is observed
- Volume is significantly lower today compared to last week
3. If the price direction reverses, it may take support at 6377 level which is 38.2 retracement for the Dec '21 - Feb '22 swing.
4. After retracement, price may hit 7400 level hitting the 6.5Y trendline.
1. 1Y trendline is hit for the 4th time in a time cyclic pattern perfectly. This is also the 1.618 Fib level for the Jan '20 - Apr '20 swing
2. Will the trendline breakdown happen this time? May not be as:
- RSI negative divergence is observed
- Volume is significantly lower today compared to last week
3. If the price direction reverses, it may take support at 6377 level which is 38.2 retracement for the Dec '21 - Feb '22 swing.
4. After retracement, price may hit 7400 level hitting the 6.5Y trendline.
Note: Typo in my post above, it is breakout in point #2, not breakdown.