Will Oil Breakout?

11 Sep 2020

After plummeting about $7, oil is maintaining the range along with other assets as it finds footing in this new territory. We have very good alignment between our Fibonacci levels and other technical levels. We can therefore be confident in the areas of strong support and resistance. Currently, oil is stuck between $36.18, the lower anchor of the Fibonacci levels, and $37.92, the .236 Fibonacci level. We have two technical levels in between. Currently, oil is sitting at one of these, $37.24. The Kovach OBV has completely flatlined, suggesting that the bleeding is over for now. If you anticipate a breakout, watch for buying volume at the upper bound of the range above.