Oil - June 17 - Phil Stock World

Courtesy of Jean-Luc Saillard.

Not a pretty picture with oil at the end of today. Using the lows of February and Highs of last month as anchors for a Fibonnaci study, we can see that the 50% retracement line held for a while (large red circle), acting as support and resistance for close to a month with spikes to the 38% retracement line. But this week has been bad with both the 61.8% retracement line and the 200 DMA broken! The 50 DMA is no decidedly going down and above the 15 DMA.

All my others indicators are now pointing down. The next support line is at 90.50, but it’s weak. Real support is around 85 which is where the big money came in during the last rally. But anything is possible on a daily basis especially over a weekend!

The daily lines worked pretty well today again:

It got pretty dicey in the afternoon when S3 was broken (first green circle) but the market recovered around 92.50 (there is a dail fib line there not pictured) and climbed back to S2 (second green circle) by the end of trading. It is not encouraging for the oil market that on a day when the dollar lost over 50 basis points that oil lost ground as well.