The most recent lowest low of the Crude Oil has been expected from Elliot and Fibonacci point of view. Now, it is time for Crude Oil Fibonacci Long positions which we will go through in this analysis.
Although it is hard to comment about the exact time of the Crude Oil Fibonacci bullish reversal move, at least you could expect the remaining of the bearish Crude Oil movements to become as completion waves.
Looking at the black gold chart we can see immediate support at two levels from Fibonacci Point of view:
- $35.00 per barrel psychological support zone
- $33.34 per barrel @138.2% custom Fibonacci Retracement zone
Although initially my bearish targets were settled at $39.15 level, at the moment we are looking for a price action development which is likely to push the Crude Oil as low as $35 and finally $33.33 per barrel zone which happens to be 138.2% custom Fibonacci retracement zone too.
Although, we are getting close to the level where we will stop shorting WTI, at the moment it seems that the bears are yet to be over with the “Black Gold”.
You probably are wonder where do we have the Crude Oil Fibonacci long positions?!
As commented mentioned above we have two direct support zones, of which the first level will act as a short term consolidative level and the second level at $33.33 zone will be the most important zone to watch for.
Extra: My heart is with the families of over 30 Oil workers who have been lost or killed in Azerbaijan during the tragic Caspian Sea accident last week
In general 138.2% Fibonacci retracement zone leads towards 88% or 90% custom Fibonacci retracement zones, thus we could expect WTI touching to $33.33 first where crude oil Fibonacci long positions would be triggered pushing the Crude oil prices up to the level of $39.15 barrel.
Meanwhile, there is also a likely-hood for the Crude oil to reverse from #35 – $36 zones as well as this is the level for 2009 lows.
Forex trade opportunity
The currency pair which has direct inverse correlation with Crude oil is loonie, USDCAD. At the moment USDCAD has broken above the 1.3600 zone. If the oil prices indeed hit the $33 per barrel level it will be likely that USDCAD will also push the 1.40 psychological resistance level too, however the immediate USDCAD Fibonacci Resistance level is at 1.3690 zone at 138.2% Fibonacci retracement zone.