Today we do have an OPEC meeting so we need to update you about the situation on the Oil. Previously, we wrote a piece about this commodity on the 21st of November, when the price was bouncing from the green resistance, which was a 61.8% Fibonacci. Price being below such an important level was for us a clear sign for a further decline. This is what we said back then:

“The green area was the last important support in the mid-term, so there is not much hope left here. Today, buyers try a reversal but chances for a bigger rise are limited, at least as long as we stay below the green area. With this kind of a price action, our eyes goes to the lows from June. Maybe we will even get there this year. „

(Click on image to enlarge)

The price was continuing the drop till the end of the last week. Then we all know what happened, we got this bullish gap after the XI-Trump meeting, which sent the price a bit higher. Calm down though, there is no buy signal here whatsoever. Actually we can see quite the opposite – a great opportunity to sell. Recent rise brought us to the green resistance mentioned above. That level brought us a bounce again and a bounce is shaped like head and shoulders pattern. What is more, in the same time we tested the long-term down trendline (black). From the technical point of view that is an amazing selling opportunity! Only if not this OPEC meeting…