Crude experienced a large decline (75%+) from the highs in 2011 to the lows in 2016. We applied Fibonacci to this key highs and lows at each (1) above.
The rally from the lows in 2016 has Crude Oil testing the 50% retracement level of the large 5-year decline at each (2).
Joe Friday Just The Facts– Crude Oil could be creating a bearish reversal pattern this month at (2).
If Crude is topping at the 50% level, it could impact the overall commodities sector and the stock market as well.
The United States Oil Fund LP ETF (USO) closed at $13.68 on Friday, down $-0.61 (-4.27%). Year-to-date, USO has gained 13.91%, versus a 1.98% rise in the benchmark S&P 500 index during the same period.
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