Light Crude Oil prices find exhaustion at Fibonacci Expansion 161.8% at 47.31 yesterday. Candles have retraced towards yesterday’s support at 48.39 which the pair now finds resistance. Candles may potentially fall towards 47.31 once again and should the current bearish momentum holds, it is highly possible for the pair to drop even lower towards Fibonacci Expansion 200.0% at 46.11.
Focusing on the H1 chart, candles were observed to be resisted earlier than expected and is expected to continue falling further. Candles have fallen below the 20 SMA, indicating the continuation of a bearish trend. Candles continue to remain within the downward sloping trend line, indicating that prices are still on a falling trend. It is possible for a shorting entry with stop loss placed 49 and the first profit taking level at 47.31.