Crude Rally Reverses at Fibonacci Retracement
240 Minute Bars
Prepared by Jamie Saettele, CMT
“The March 1 spike into 110.00 completed at least 5 waves up from the 2/2 low and maybe 3 waves up from the 2011 low. Near term implications are for weakness towards 104.60 and 103.00.” I wrote yesterday that “crude’s decline reversed just below the former 4th wave low, which is enough evidence to turn bullish again (against 104.34).” The rally from 104.34 reversed at exactly the 61.8% retracement of the decline from 110.53, which is typical of corrections. The implications are for a drop below 104.34 in wave C (to complete the correction). The bullish outlook is at minimum delayed.
Bottom Line (next 5 days) – bottoming
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