Mark's Quick Calls: Crude Trading

Overview

Crude is currently trading between key technical levels: support at $60 and resistance at the 50% Fibonacci retracement level around $64.47. Momentum indicators suggest the market is overbought, indicating potential for a pullback.

Over the past month, we've observed three attempts to break below $60 and three attempts to surpass the 50% Fibonacci level since mid-April. This pattern aligns with the adage: "doubles hold, triples fold," suggesting that a third test of these levels may result in a breakout.

A break of support would open the door for a test of the $55 level while a break of resistance would target a test of the 61.8% Fibonacci at 66.86.

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