As much flak as I’ve taken about Fibonacci studies, it only eggs me on to show them more.
I’ve been quite hung up on crude oil for months now, and it dawned on me this afternoon to try dropping a retracement pattern on top of it. Sure enough, it opened my eyes up to some pretty important support and resistance levels. As you can see below, the lowest we got this week was nailed by one level (see yellow tint), and I’m looking/praying for firm resistance at the cyan tint. Should we sink on Wednesday, I’ll be watching the green tint just above $42 as the next target.