Micro WTI CRUDE OIL Futures (MCL1!), H4 Potential For Bearish Drop
Type:
Bearish Momentum
Key Levels:
Resistance: 116.63
Pivot: 113.89
Support: 101.55
Preferred Case:
On the H4, with price recently breaking the ascending trend channel, we have a bearish bias that price will continue to drop from the pivot at 113.89 at the swing high in line with the 50% fibonacci retracement and 61.8% fibonacci projection to the 1st support at 101.55 in line with the 61.8% fibonacci projection
Alternative Scenario:
Alternatively, price may reverse off the pivot and rise to the 1st resistance at 116.63 in line with the pullback resistance and swing high and 78.6% Fibonacci projection.
Fundamentals:
Overnight, price of Brent reached 117 and WTI at 114 on news that the G7 passed the proposal to fix a price cap on Russian oil . If OPEC meetings concludes with maintaining current production level, look for oil prices to continue climbing in the near term, giving us a medium bullish bias.
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Desmond Leong runs an award-winning research firm (The Technical Analyst finalists 2018/19/20 for Best FX and Equity Research) advising banks, brokers and hedge funds. Backed by a team of CFA, CMT, CFTe accredited traders, he takes on the market daily using a combination of technical and fundamental analysis.