US Oil Bearish

The US Oil price had shown a break and retest of the 46.30 support turned resistance and is now showing bearish price action. Price was anticipated by market participants to reach out 0% fibonacci support as first target and the 42.60 support as second target. Today we can see price has reached the 42.60 support.

Currently, price sits at 42.67 and having in mind it reached the support, an upward momentum might occur that could drive the price to first bull target at 43.00. On the other hand, bears have the advantage here as price is now outside the trading channel and it might continue to trade in a downward motion.

If that is the case, the we might expect next target to be around the psychological 42.00 level. Below that, 41.60 is seen as next support.

Chart: US Oil D1