Welcome to Extreme Investor Network, where we provide you with exclusive insights and analysis on the latest trends in the stock market, trading strategies, and more. Today, we have some valuable information for you on the current market conditions and potential trading opportunities.
This week, we are closely watching the price action in crude oil, as there are indications that a bearish correction may be coming to an end. The recent decline in price completed a 78.6% Fibonacci retracement and coincided with the lower boundary line of a large symmetrical triangle pattern. Resistance was observed at the top line of the triangle, near the most recent swing high in early July. This often signals a potential decline to test support levels around the bottom line of the triangle.
However, a bullish reversal signal could be on the horizon if we see a rally above Monday’s high, followed by a move above today’s high. Key resistance levels to watch for include the 38.2% Fibonacci retracement at 77.02 and the 50% retracement level at 78.49, confirmed by the 200-Day MA at 78.39. Further upside targets include the 20-Day MA at 79.14 and the 61.8% Fibonacci retracement at 79.97.
If crude oil manages to break above the recent interim swing high of 79.67, it could signal a bullish breakout of the symmetrical triangle formation. Demand is expected to improve in this scenario, increasing the likelihood of a successful breakout as crude approaches the apex of the triangle.
On the flip side, the outlook may turn bearish if crude oil drops below the support area at 72.24 and stays below that level. In this case, potential support can be found at the 88.6% Fibonacci retracement level of 70.11, with additional support around 69.57 to 69.46 based on multiple Fibonacci measurements.
Stay tuned to Extreme Investor Network for more in-depth analysis and expert insights on navigating the stock market and maximizing your trading opportunities. Make sure to subscribe to our newsletter for the latest updates and exclusive content. Happy trading!