Nov 12 2018

Crude Oil (NYMEX) – Ready to rise

Crude Oil(NYMEX):-A sharp fall is seen in Oil, after the formation of bearish reversal pattern “Double Top”. It seems that the targets of double top pattern is already met – if we calculate from the breakout of its neckline, then there is about $9 fall (from 67.92 to 59.24) – which seems equal to the width of reversal pattern. Fibonacci tool is applied on the rally started from $49.10 (09 Oct 2017) to $76.87 (03 Oct 2018), which in turn has given us the retracement ratios of 50% and 61.8% at $62.97 and $59.69 respectively. At present, the Oil is hovering at a critical Fibonacci ratio of 61.8%, which in technical language considered as a Golden Retracement level (measured by its level of criticality). Momentum indicators are in their extreme oversold zones as RSI 14 day is at 27.01, while slow stochastic is ranging below 20 mark (at 12.46). The applied studies are suggesting a possible pullback for the target of 64.50.