Crude Oil

(CLX24) 

The chart below is key to this analysis.

There are two methods we use at ONE44 to find support and resistance in the markets.

The first are major Gann squares, these are the yellow horizontal lines on the chart. On the chart you can see where the market turned multiple times at these levels.

The second is Fibonacci retracements and this is what most of this post will be about.

There are a few basic rules when using the Fibonacci retracements with the ONE44 rules and guidelines.

This is the short version.

A 38.2% level keeps the trend intact and new highs/lows should follow.

A 23.6% level shows the market is extremely strong, or weak.

A 61.8% level can cause wide swings and keep the market in a trading range.

A 78.6% level can send it 78.6% of where it just came from and even be the end or start of a Bull market.

We have done 42 videos on how to use the Fibonacci retracements with the ONE44 rules and guidelines. These Videos are worth watching even if it is not in the market you are trading, as the ONE44 rules and guidelines are the same for every market. You will also see why we believe the Fibonacci retracements are the underlying structure of ALL markets.

This is our latest video with analysis on Soybean Oil and the S&P 500 Futures.

.

Crude Oil

November

Following the rules above, we saw Oil hit 38.2% at 71.50, we had posted this in our last update on Barchart and it was the swing point for the week.

A setback from a 38.2% retracement keeps the current down trend intact and it can go for new lows from it, however we always watch all the retracements on every move to see just how weak, or strong the market is regardless of the long term target. 

A failure to make a new low is always a sign something is changing and failing to make that new low in the area of a 78.6% retracement can be the start of the next Bull move. We showed this exact thing in Soybean Oil in the video posted above.

Use 71.50 as the swing point for the week again.

Above it, look for the area of the 75.68 major Gann square and 38.2% on the continuation chart at 76.50.

Below it, the short term target is 78.6% back to the 9/10/24 low at 66.30, as we just mentioned holding this area can be the start of the next Bull move. A failure to turn higher from here will give us a target area of 61.8% on the continuation chart at 58.70 and the 56.49 major Gann square.

You can email updates on Gold, Crude oil and the S&P 500 for free, HERE.

ONE44 Analytics where the analysis is concise and to the point

Our goal is to not only give you actionable information, but to help you understand why we think this is happening based on pure price analysis with Fibonacci retracements, that we believe are the underlying structure of all markets and Gann squares.

If you like this type of analysis and trade the Grain/Livestock futures you can become a Premium Member.

You can also follow us on YouTube for more examples of how to use the Fibonacci retracements with the ONE44 rules and guidelines.

FULL RISK DISCLOSURE: Futures trading contains substantial risk and is not for every investor. An investor could potentially lose all or more than the initial investment. Commission Rule 4.41(b)(1)(I) hypothetical or simulated performance results have certain inherent limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not actually been executed, the results may have under- or over-compensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown. Past performance is not necessarily indicative of future results.