Blue lines- Fibonacci retracements
Yellow rectangle- resistance
Oil price is trading below $80 as it remains under pressure for a third day. In our recent analysis we noted the bullish scenario that would get activated if price broke above $93.70. Oil price only managed to make a double top around the $93.70 area where we also find the 38% Fibonacci retracement resistance. Oil is now challenging 2022 lows. The rejection at the resistance and the break below $82 cancelled our bullish scenario chances. Oil is vulnerable to a move towards low $70's if not even lower prices with a 6 in front. If bulls manage to defend and respect the $76.50, we could see another strong bounce at least towards $82.
