June 23, 2020 (Investorideas.com Newswire) Crude oil moved above the previous highs and at the moment of writing these words, it’s testing the upper border of the March price gap. And given the fundamental news that are reaching (and likely to reach) the market – the increasing Covid-19 cases in the U.S. and globally – it seems that black gold might not have enough strength to keep pushing higher.
The upper border of the March price gap is one of the most important resistance levels nearby. There’s also the 61.8% Fibonacci retracement level, but since it’s based on the April low that is relatively unclear (different series of futures contracts were trading at very different price levels, some were even in the negative territory), the Fibonacci retracement might not be as reliable as the price gap.
This means that the resistance level that is being tested right now, is of critical importance. Please note how aligned is the price of crude oil with the previous spending chart – and with the prices of stocks themselves.
Just several months ago, crude oil was one of the weakest markets out there, and its rebound was one of the strongest. The reversal in black gold and a decisive decline could be the thing that tips the scale for all markets.
Consequently, while a trigger is not necessary for the market to move in a given direction, getting one could speed things up. And it seems that crude oil’s reversal could be the