Oil’s Inability To Recapture $51 Is A Bearish Sign
Alexandros Yfantis | May 18, 2017 12:57AM ET
Oil prices have slowed down their rise from below $43 early May as resistance at $50-51 is formidable. The most probable price action I expect from now on is a rejection at current levels and break below support at $47.50. On May 15th while oil prices were rising above $49 I said the following on Twitter….
I continue to believe that a rejection at current levels is the most probable outcome and this is expected to lead prices even lower towards low 40’s and why not high 30’s.
Oil is trading below the 4 hour Kumo (cloud) and is showing rejection signs at the 61.8% Fibonacci retracement resistance. Important support is found at $48 for the short-term. Resistance is at $49.40 and at $50. As long as price is below the 4 hour Kumo I will be leaning on the bearish side. At the same time I believe USD/CAD will conclude its downward pull back and resume its up trend towards 1.40-1.42.
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