Crude Oil Updates – 9 Jun 2016

As a follow up of my previous post on crude oil on 28 Apr 2016 and 26 May 2016, looks like I was very lucky that my forecast is correct.

Crude Oil closed at 51.23 on 8 Jun 2016. This was above 61.8% level of Fibonacci Retracement. At this point, I am quite confidence that long term down trend was end. Now what we need to find out whether Crude Oil can extend its uptrend or not.

1. Crude Oil shown sign of overbought because it has been on the upper part of up trend channel for quite some time, and also it was slightly above 100% level of Fibonacci Extension.
   
2. Thus, I believe that Crude Oil will retrace to gain momentum.
3. We need to find the support first. The following charts shows that $44 is a strong support.
4. $47-48 is an immediate support zone. Also, 23.6% level of Fibonacci Retracement is there too.
   
5. Therefore, I think that Crude Oil probably retrace to $46-50 level. The reason I include $50 is because of round number.
6. If Crude Oil can stay firm above $46-50 level, I believe that the uptrend will continue. It will go up to $53-54 in short term, and then $60 in mid term. How long will it take? I don’t know.
   

If my analysis turns out to be right, then it is just good luck; otherwise, it is bad luck.

https://lcchong.wordpress.com/2016/06/09/crude-oil-updates-9-jun-2016/