Possible targets for oil based on Fibonacci
When I wrote post Is oil going back to 25$ few weeks ago, oil was at 37$. Now it is below 30$. Today I want to present some possible targets for oil.
Based on move from June 2014 to January 2015 we can spot that price is near 127 Fibonacci extension level (25.6$) and next after that we have 138.2% Fibo extension (18$). Weekly oil chart:
We can also draw Fib extension based on move from March 2015 to August 2015. When we put Fibo on this leg, we can see that 38.2% retracement was a resistance for oil. Now, oil is below 138.2% extension. It is possible that it will hit 161.8% extension (25.4$). Weekly oil chart with Fibo levels from other leg:
So based on these two Fibo projections we can see that at 25$ we have possible support levels.
What is interesting, when you roll the oil chart back, you can see that at 25$ there was a high in year 1996. From that time we can see that also level around 19$ is another possible support. Monthly oil chart:
Which level will mark the end of move down? We will see that. From technical point of view, action on oil is very interesting and I am watching it close.