ONE44 Analytics where the analysis is concise and to the point
Crude Oil is now approaching our long term target area, this is a major Gann square at 56.51, 78.6% back to the 1/8/20 high (57.32) and 61.8% back to the 2018 high (57.92). Provided they can get up to this area, you can look for a bigger setback then they have been having on this current rally. It is more likely to look like the move in September to November of last year. The reason being, is that the levels above are 61.8% and 78.6% and these tend to cause bigger breaks. You can find all the ONE44 Fibonacci rules and guidelines here.
As for what to look for on a setback from 56.51 to 57.92, the long term target would be 38.2% of the move up, with today's high this is 44.75 and it is our long term swing point. This level would move up with any new high. Any setback that can only go 23.6% back (currently 49.25) would keep the market extremely positive.
For the upside,
Once they can get a solid close above 57.92 the swing point will be the 56.51 major Gann square and the next long term target will be 66.00.
In between the longer term levels mentioned above we recommend you use the second chart below. This is based on W.D. Gann's Law of Vibration. The yellow lines on it are to be used as support and resistance, as well as short term swing point and targets.
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 and Gann squares.
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This is our latest videos on how to use the Fibonacci retracements. Even if you do not trade the market covered the rules and guidelines are the same, as we believe the Fibonacci retracements are the underlying structure of all markets.