Forex Trading: Oil has found a temporary support, what's next? December 15, 2018 - FXDailyReport.com
WTI and the Brent oil have tried to rebound on the short term, but I’m afraid that the prices will drop further after the temporary sideways movement. It remains to see if the current range will be a distribution or an accumulation, most likely it will be a distribution and the rate will resume the downside movement.
The United States Crude Oil Inventories indicator was reported at -1.2M in the previous week, versus the -3.0M estimate and versus the -7.3M in the former reading period.
The WTI Crude Oil dropped in yesterday’s trading session and has failed to stay above the 150% Fibonacci line of the descending pitchfork. Price has found a temporary support right above the warning line (wl1) of the descending pitchfork and has failed to reach the downside 50% Fibonacci line of the major ascending pitchfork.
You can see that it has tried to reach and retest the median line (ML) of the major ascending pitchfork, but it has failed and now it could approach and reach the 50% line. The perspective remains bearish as long as the rate stays below the 150% Fibonacci line and below the lower median line (lml). Personally, I believe that the rate could increase again if it stays above the 50% line. It could rebound if it will fail to reach the 50% line or if we’ll have a false breakdown below it.
Brent oil has failed to stay below the first warning line (wl1) of the descending pitchfork and has tried to climb higher to test and retest the median line (ML) of the major ascending pitchfork and maybe the 150% Fibonacci line of the descending pitchfork.
The failure to retest the near-term resistance levels it could send the rate down again. It could increase only if it will stay above the 57.53 former low, but this scenario is less likely to happen.
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