Crude oil is hovering at a 4-month high around the 103 level. Prices rallied from a January 9 low of 91.23 to a high of 103.27 on Thursday. Prices are now consolidating near this high. The market is being capped by the 61.8% Fibonacci retracement of the down- leg from the September high (110.68) to the January low (91.23).
Daily momentum looks strong, as indicated by the bullish RSI which has now crossed above the 70 level. CCI is also bullish above 100. A move higher would target resistance at the 78.6% Fibonacci level at 106.50.
The bullish cross of the 20-day moving average above the 50-day is also a positive signal.
However, the 61.8% Fibonacci level is proving to be a major obstacle and a correction to the downside is possible, with sights set on support around the 100.90 level which is the 50% Fibonacci.
Crude oil is hovering at a 4-month high around the 103 level. Prices rallied from a January 9 low of 91.23 to a high of 103.27 on Thursday. Prices are now consolidating near this high. The market is being capped by the 61.8% Fibonacci retracement of the down- leg from the September high (110.68) to the January low (91.23).
Daily momentum looks strong, as indicated by the bullish RSI which has now crossed above the 70 level. CCI is also bullish above 100. A move higher would target resistance at the 78.6% Fibonacci level at 106.50.
The bullish cross of the 20-day moving average above the 50-day is also a positive signal.
However, the 61.8% Fibonacci level is proving to be a major obstacle and a correction to the downside is possible, with sights set on support around the 100.90 level which is the 50% Fibonacci.
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