Crude Rally Fails at Former High and Fibonacci
Prepared by Jamie Saettele, CMT
“The sharp rebound in crude today is probably the beginning of a multiday advance that serves to correct the sharp decline from the September high. Expect resistance from the 38.2% retracement and 9/21 high at 9332/81 and the 61.8% retracement at 9602. While we don’t know what will happen of course, it is possible that the decline from the top composes 5 waves with an extended 5th wave. An extended 5th wave is often succeeded by a return to wave 2 of 5 (9646 in this case), which is close to 9602 (61.8%).” Failure for the 3rd consecutive day is enough to be bearish against the Monday high. Exceeding that level would bring 9600 back into play.
LEVELS: 86.84 88.94 91.25 93.81 94.99 96.02