Light Crude Oil prices tumbled after failing to hold above 50 last week. Candles continue to be resisted by the downtrend line and seeks to retrace. Paying attention to the Fibonacci Retracement, candles have fallen below 50.0% at 48.24 and seeks to drop further and the next exhaustion level lies at 61.8% at 47.24 which coincides with the support price at 47.28.
Focusing on the H1 chart, candles have touched Fibonacci Expansion 161.8% at 48.18 where exhaustion may possibly occur. However, candles have re-tested thrice but failed to close above the 200 EMA, indicating the possible continuation of the bearish run. Should candles continue to fall further, prices are expected to test the support at 47.28 which also coincides with Fibonacci Expansion 200.0% at 47.18 before a reversal occurs. The region highlighted in yellow marks the area where traders could look out for opportunities to engage in a longing position for the week.
|Bearish towards 47.28||45.57||45.83||47.28||48.16||48.72||49.09|