Blue lines- Fibonacci retracement level
Oil price is trading around $75.96 after making a low yesterday around $74.95. Price seems to have stopped the decline, at least briefly, at the 61.8% Fibonacci retracement level. As we mentioned in previous posts, the 61.8% retracement is key Fibonacci support. Price action confirms this as the steep decline seems to have at least paused. The RSI has still not reached oversold levels. At the 61.8% retracement we usually see trend reversals. We are also approaching the end of the trading week so it will not be a surprise to at least see a bounce in Oil price from current levels. Technically trend remains bearish.
