Technical Analysis of US Oil for May 06, 2016
After breaking the descending channel the US oil continued rising and met the resistance at 46.00 which is the 23.6% Fibonacci applied to the channel breakout point.
This level was rejected twice. This should result in the US oil weakness in the mid term. The rate could retrace back to retest the 200D Moving Average near the S2 (39.00) support.
Consider selling the US oil at the current rate (44.00) targeting the S2 support, which is the channel breakout point. The stop loss should be just above R1 (46.00)
Support: 42.10, 39.00, 36.00
Resistance: 46.00
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