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Talking Points
Crude Oil Weekly
Crude prices rebounded off confluence trendline support this week at the42-handle where themedian-line of a long-term pitchfork formation dating back to 2015 converges on basic channel support. A more significant region of Fibonacci support is seen lower at40.52/84 – a region defined by the 1.618% extension and the 50% retracement of the 2016 advance. Both these levels may end up offering a more meaningful low near-term.
Crude Oil Daily
Technical Outlook:The immediate focus is on this rebound with resistance now eyed at the highlighted median-line confluence around ~45.80/83. Ultimately, the risk remains for a final dip into the structural support confluence at40.52/84before a more meaningful recovery.
Crude Oil 240min
Notes: A closer look at the 240min chart highlights immediate resistance at45.19 backed by the45.80/83 zone (near-term bearish invalidation) - both levels of interest for possible near-term exhaustion / short-entries.
Interim support rests at43.73 with the immediate focus higher while above the weekly open at43.09. A breach above the upper parallel would suggest a more meaningful lows is in place with such a scenario targeting47 and the 50-line around ~47.50s. From a trading standpoint, I would be looking for exhaustion into slope resistance if we stretch higher first OR a buy on a pullback for one last push towards the median-line before turning lower.
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- Written by Michael Boutros, Currency Strategist with DailyFX
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