$CL Crude Oil Remains Bullish, but Expect a Pullback

Crude Oil

Crude Awakenings

Followers on Twitter know that I have been bullish oil since the breakthrough at the 38.2% Fib retracement and the formation of an inverse head and shoulders pattern. The chart suggests to me that we will test at least the 78.6% Fib line, which also aligns with the distance from the head to neckline of the IHS.

That said, I expect a pause or pullback here at the $64 level. The crude price has had a strong, almost linear move, and now meets resistance at the 61.8% Fib retracement and an area with significant market memory dating back to January of 2018. I’d lighten up longs here until crude definitively breaks through the $64.50-$65 level, at which point I’d set a price target of ~$70.

About the author

I am the founder of fibonacci.com and an avid trader. I am also the co-founder of Texas Precious Metals, a top US precious metals company. In 2006 I was a contestant on The Apprentice with future president, Donald Trump. I live in Coeur D'Alene, Idaho, with my wife and six children, where I spend my time hiking, charting, and changing diapers.

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