Oil Targeting $58 PPB Before Finding Support

I believe Crude will continue to drift lower over the next few weeks testing the $60 ppb level before breaching this support level and ultimately targeting $58 or lower. Lacking a real resolution to the trade and other global issues, I believe the current global economic pressures will drive oil prices dramatically lower over time – at least through the Summer months.

This Monthly Crude Light chart shows our Advanced Fibonacci price modeling system at work. As of right now, we see a recent price rotation top (highlighted by the RED DOWN TRIANGLE) near the right edge of price as well as the RED and GREEN Fibonacci projection levels near $69.50. These projection levels indicate that the $69.50 level is likely resistance. Notice the BLUE and CYAN Fibonacci projection levels near $58.00 ppb. The fact that these two levels nearly overlap one another indicates that the $58.00 ppb level is a key price level for current support. Obviously, the ultimate downside target, near $14.00 ppb, is an extended downside level that could happen – but is not likely till all other levels a breached with downside price activity.

Currently, as long as the $60.00 ppb is not breached, the Monthly Fibonacci price modeling system trend is “Bullish” and a move to below $58.00 would change the trend to “Bearish”. As we stated, the $60.00 price level is critical going forward on this Monthly chart.

This Weekly Crude Light chart paints a shorter-term price picture and clearly highlights the most recent price decline with a clear sell trigger near $69.00. Take special notice of the Fibonacci upside targets between $54 a $58 near the right side of the chart. These upside targets, because the price is moving lower from above and has breached the Bearish Price Trigger Level (RED), are now downside target levels. With no real support between the current price and the $58.00 level, we expect oil to continue to fall to near the $58.00 level before finding some support – possibly as low as $54.00. Ultimately, if these levels don’t provide sufficient price support, oil prices could fall back to near $45 ppb before finding any real support – a -30% decrease from current price levels.

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