Oil Turns Lower Following Dark Cloud Cover
Oil futures have turned lower from resistance confluence, following a Dark Cloud Cover candle pattern highlighted last week. Despite a close above 50% Friday, the black gold gapped down Monday and declined over 4% before finishing the day down 2.4%. The contract is currently trading below channel support, 37.23 at time of writing.
Continued weakness below the channel floor targets 38.2 Fibonacci support at 35.50, a break below there would target the 23.6 Fib at 31.90. Alternatively, a reversal back above the channel floor would bring the 50% Fib/Friday’s close 38.55 back into focus.
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Oscar Goullet – @FXtechs
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