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We are taking a quick look at the Crude Oil market today as a level of support stood out rather easily. We are wondering, and thought we would provide, what a possible level of resistance might now be consistent with the Fibonacci retracement price barometer.
On the fall from the 8445 high in the March Crude of January 11 it has stopped so far at 7401. The .618 Fibonacci support using the 6746 low of September 25 we have calculated as 6395.
If this low should hold and a recovery ensues the half way back or .500 Fibonacci resistance comes to 7923 according to our math. This may be a reasonable price level to expect resistance to form. If it proceeds higher the .618 retracement, using the parameters of 8445 high and 7401 low, comes to 8046.
Weather at least here in the Midwest is expected to become colder during the course of the week. This had been an excuse for the last leg of the rally and perhaps will serve the same purpose now.
As always there are different ways to utilize trading tools. We always suggest using them in a way with which you are most comfortable.
Good trading to all!!
Jeff
CB&S
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