The price of US Oil has broken under the 0.382 ($40.45) Fiboncci level for the 3rd time since the start of COVID pandemic.
As at today 02 Nov, and with the US election about 24 hours away, oil price is heading towards the next Fibonacci level of 0.5 ($32.81).
This is supported by bearish MACD (with the blue line crossing over the signal line and both lines now under the crucial zero level) heading further down.
The price zone ($28.34 - $34.88) at the 0.5 Fib level has historically been very strong going by historical price interaction (price analysis on Daily chart from 2000 to date only):
- Resistance: 08 Mar - 27 Jun 2000
- Resistance-Support flip: 30 Aug - 27 Nov 2000
- Resistance: 10 Jan - 31 Aug 2002
- Resistance: 01 Apr - 09 May 2002
- Resistance: 16 Sep 2002
- Resistance-Support flip: 09 Jan 2004
- Price reversal: 12 Dec 2008 - 19 Feb 2009
- Price reversal: 14 Jan - 15 Feb 2016
Summary
- What impact will this (US dollar) and tomorrow's US election have on the USOIL? I am holding out for a further price drop within the hot zone ($28.34 - $34.88) for a few days, perhaps weeks, before climbing back above the 0.5 Fib level towards the 0.382 level.
- My overall outlook is neutral at the moment
As at today 02 Nov, and with the US election about 24 hours away, oil price is heading towards the next Fibonacci level of 0.5 ($32.81).
This is supported by bearish MACD (with the blue line crossing over the signal line and both lines now under the crucial zero level) heading further down.
The price zone ($28.34 - $34.88) at the 0.5 Fib level has historically been very strong going by historical price interaction (price analysis on Daily chart from 2000 to date only):
- Resistance: 08 Mar - 27 Jun 2000
- Resistance-Support flip: 30 Aug - 27 Nov 2000
- Resistance: 10 Jan - 31 Aug 2002
- Resistance: 01 Apr - 09 May 2002
- Resistance: 16 Sep 2002
- Resistance-Support flip: 09 Jan 2004
- Price reversal: 12 Dec 2008 - 19 Feb 2009
- Price reversal: 14 Jan - 15 Feb 2016
Summary
- What impact will this (US dollar) and tomorrow's US election have on the USOIL? I am holding out for a further price drop within the hot zone ($28.34 - $34.88) for a few days, perhaps weeks, before climbing back above the 0.5 Fib level towards the 0.382 level.
- My overall outlook is neutral at the moment
