As evident from the daily timeframe of WTI oil, the unit has been trending lower since topping at $94.99 in late September 2023, shaped by a series of lower lows and lower highs.
What’s technically interesting right now is the possibility of an AB=CD pattern taking form at $77.80 (denoted by a 100% projection ratio) if price engulfs the $76.14 peak established in late December 2023. Adding to this pattern’s credibility are the surrounding ratios (some Fibonacci, some not) between $78.75 and $78.25.
Ultimately, should further upside materialise, resistance may take form between $78.75 and $77.80, from which the chart may welcome sellers in line with the current downtrend.
What’s technically interesting right now is the possibility of an AB=CD pattern taking form at $77.80 (denoted by a 100% projection ratio) if price engulfs the $76.14 peak established in late December 2023. Adding to this pattern’s credibility are the surrounding ratios (some Fibonacci, some not) between $78.75 and $78.25.
Ultimately, should further upside materialise, resistance may take form between $78.75 and $77.80, from which the chart may welcome sellers in line with the current downtrend.
For those who traded the zone and set downside support targets according to the 38.2% and 61.8% Fibonacci retracement ratios derived from legs A-D, the final profit target was achieved recently.