Oil has been in a downtrend since the 8th of November. Currently trading at $79.99 a barrel with resistance just slightly above at the 38.2% fib ($81.03).

Taking a look at US Crude oil in this instance, from a technical perspective it is currently trading at $79.99 a barrel. Oil has been in a downtrend since the 8^th of November, but a big break at the beginning of the week on Monday may have created some momentum towards the upside. Applying the Fibonacci retracement to the chart, towards the upside resistance sits at $81.03 (38.2% fib) then at $82.31 (peak of the green candlestick in between the 38.2% and 50% fib’s), then at $83.30 (50% fib). A break above the 50% fib level could see oil climb back towards the $88-$90 a barrel price range. However, it is important for investors to monitor ongoing situations in China, with China being the world’s largest crude importer, as it has a major influence on this market.

Additionally, crude oil inventories are set to be released later today, which could also impact the price of oil. Towards the downside, support sits at $79.09 then at $78.21 (23.6% fib) then at $76.92. A break below these support points may see oil retreat and fall back towards the $73.66 price level. Looking at the indicators, MACD is currently negative but heading towards a positive position and RSI is neutral as it reads 45.