OIL - Potential Reversal Zone at Key Fibonacci level

28 de mar.

The Crude Oil Futures (4H) chart highlights a potential bearish scenario as price action approaches a critical resistance area. The highlighted zone, which is a strong resistance, coincides with the 0.618 - 0.65 Fibonacci retracement levels, which are often key areas for price reversals. Additionally, the rising wedge formation signals a potential loss of bullish momentum, typically a bearish continuation or reversal pattern.

The price has made several attempts to push higher, but the presence of multiple confluences, including the resistance levels around $70.50, suggests that the bullish rally might be facing exhaustion. If a reversal occurs from this zone, it could lead to a significant drop, potentially targeting the $66.50 region or even lower, aligning with previous structural supports and liquidity zones.

Traders should monitor for bearish confirmations, such as a strong rejection candle, a break of the rising wedge structure, or increased selling volume.

Key levels to watch:
- Resistance Zone: $70.50 - $71.00 (Fib 0.618-0.65 and strong resistance)
- Support Targets: $68.00 and $66.50

This setup requires patience and confirmation before taking action. Always trade with proper risk management!

28 de mar.

Trade ativo

Price already broke out! trade is playing out!