Using Fibonacci's on the monthly chart, you can clearly see that OIL
is currently sitting on 38.2 Fib's which indicate a possible retracement. The descending channel
also shows that OIL
may be have achieved a Lower Low given its current down trend, so more upside is expected. Another reason to go Long is that it is currently sitting at a major support level
which has been respected many times in the past since January 2015.
Overall, you can expect USOIL
to reach to resistance, within the descending channel
My target profit will be set at 50.00, stop losses right under the channel at 43.70 and finally an entry at 44.90 once a breakout of consolidation on the 1HR chart occurs.