Best Ideas for Trading Oil

Oil broke down from our bull wedge pattern. This is fairly common, and these days bull wedge patterns are only slightly more probable to break to the upside than the downside, especially with something so precarious as oil. It dropped the full extent of the Fibonacci retracement levels, finally catching support at $38.89. It appears we are forming a small bear wedge pattern at current levels. Watch out because there is a vacuum zone below to a POC at $37.11 and then $36.14. If oil catches a lift, watch for resistance at the Fibonacci levels above.