FxNews—Crude Oil prices declined from the 38.2% Fibonacci resistance level, a robust area that has kept the market bearish since November 24. In today’s trading session, the black gold rose from $67.6 after it neared the 78.6% Fibonacci support level, trading at approximately $78.7.
Looking at the 4-hour chart, we notice that Crude Oil lacks momentum as the prices move sideways inside the bearish flag.
Crude Oil Trades Sideways Below $69.6 Key Resistance
The immediate support is $67.5, backed by the 78.6% Fibonacci. From a technical perspective, the downtrend will likely resume if sellers push Crude Oil prices below this support. In this scenario, the next bearish target could be the November low at $66.5.
Please note that the downtrend should be invalidated if Crude Oil’s value exceeds the immediate resistance at $69.6. If this scenario unfolds, the price could rise for testing $70.3, backed by the 23.6% Fibonacci.