Type:
Bearish Dip
Key Levels:
Resistance: 104.56
Pivot: 102.83
Support: 98.24
Preferred Case:
Prices are on bearish momentum and abiding by a descending trendline. We see the potential for a dip from our pivot at 102.83 which is a graphical overlap and in line with 38.2% Fibonacci Retracement towards our 1st support at 98.24 in line with 61.8% Fibonacci Projection .
Alternative Scenario:
Alternatively, price may break our pivot structure and head for 1st resistance at 104.56 which is a graphical swing high and in line with 78.6% Fibonacci Projection .
Fundamentals:
Biden Administration stated its intent to release around 1m bbl /day of oil from the SPR to ease the inflation situation in the country, supporting a bearish bias.
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Desmond Leong runs an award-winning research firm (The Technical Analyst finalists 2018/19/20 for Best FX and Equity Research) advising banks, brokers and hedge funds. Backed by a team of CFA, CMT, CFTe accredited traders, he takes on the market daily using a combination of technical and fundamental analysis.