Crude Is Stalling at the Confluence of Supports
Crude oil closed last week at a key confluence of supports ~$77 while completing a double top target. These are the 88.6%% Fib of the last bullish leg (December 2021- March 2022), the 50% Fib of the whole move from $11 to $131 (using the continuous as a reference), and the double top target (October - November highs).
What happens from here is important. An initial rebound is extremely likely but the level to watch is a back-test of $77.50. A break above that level will start pointing to a developed bottom but until that happens, we have to respect the recent trend.
