Oil decline is approaching the key support level of 38.95-39.00 where our technical target exists. This level meets 127.2% Fibonacci as seen on the graph.
Now, the sideways actions dominate the movements with ADX and RSI negative signs without lack of reversal signs. However, prices are close to the support of the channel near 127.2% Fibonacci level. We will be watching the price behaviors around 38.95, as a break below it will cause new downside movements, but fining support at this level will change the situation to the positive side.
- Support: 38.95 – 38.35 – 37.75
- Resistance: 40.00 – 40.50 – 41.50
- Direction: Sideways