Oil is pulling back from a strong long-term upside resistance
Oil is pulling back from the strong upside resistance marked by a horizontal line and a downside Fibonacci retracement of 38.2% 2011-2020 swing down. Based on this rejection we can see that the instrument will either continue its consolidation between 60 and 65 or it will go for a deeper correction on a confirmed break below 57. If we see a confirmed price action break below 57 this would mean that it will go for a 52 test.
On the weekly chart, we can see that Oil has tanked below the previously broken long-term resistance line 62.70. It is also still below 200 SMA and needs to break above 63 to invalidate downside reversal and a deeper correction lower.
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