This chart looks at Monthly Crude Oil Futures over the past 16-years, with Fibonacci retracement levels applied to the monthly “closing highs in 2008 and the closing lows of 2016.”
The rally over the past couple of years took it to its 38% retracement level, where a large bearish reversal pattern took place last month at (1). As this reversal took place, monthly momentum was at its highest level in the past 7-years.
Crude oil could be the most important commodity on the planet.
The decline last month has it testing rising support this month at (2).
If Crude breaks support at (2), don’t be surprised to see a good deal of selling pressure take place. Very important support test in play friends!!!