Crude Oil closed at 51.23 on 8 Jun 2016. This was above 61.8% level of Fibonacci Retracement. At this point, I am quite confidence that long term down trend was end. Now what we need to find out whether Crude Oil can extend its uptrend or not.
- Crude Oil shown sign of overbought because it has been on the upper part of up trend channel for quite some time, and also it was slightly above 100% level of Fibonacci Extension.
- Thus, I believe that Crude Oil will retrace to gain momentum.
- We need to find the support first. The following charts shows that $44 is a strong support.
- $47-48 is an immediate support zone. Also, 23.6% level of Fibonacci Retracement is there too.
- Therefore, I think that Crude Oil probably retrace to $46-50 level. The reason I include $50 is because of round number.
- If Crude Oil can stay firm above $46-50 level, I believe that the uptrend will continue. It will go up to $53-54 in short term, and then $60 in mid term. How long will it take? I don’t know.
If my analysis turns out to be right, then it is just good luck; otherwise, it is bad luck.