US crude to rally once more?
US crude has been a very consistent performer of late, with yet another major leg higher occurring in the US session. We have seen yet another gradual retracement overnight, with a move back to the 38.2% Fibonacci level. Given yesterday’s clear respect of the 23.6% retracement, it is clear Fibonacci levels are worth watching for the next leg higher.
Ultimately, a close above $39.09 would be a strong indicator that another move higher is occurring. With recent big moves coming within the afternoon, volatility could only pick up later in the day.
Support levels of note are $38.32, $38.08, $37.84 and $37.08. Resistance levels to watch are $38.94, $39.09 and $39.84.
Brent also respecting Fibonacci levels
Brent crude is almost a carbon copy of US crude, with a pullback to the 23.6% retracement yesterday, being following by a 38.2% correction this morning.
We are seeing another rally seemingly coming to the fore, which continues to play into the uptrend of recent weeks. Again, confirmation would come with a closed hourly candle above yesterday’s high of $41.20. The bullish outlook remains unless we see a break back below yesterday’s low of $39.04.