Technical outlook and chart setups:
Crude prices seem to have bounced off its Fibonacci 0.618 support around the level of 42.50 yesterday. An entire rally that had begun at 37.40 through 51.00 has been retraced and bounced off the levels of 42.50. A correction might expand lower towards 41.72 before resuming its previous rally. It is therefore recommended to remain long from yesterday with risk at 38.00 and extensions up to 56.00. Immediate support is seen through 41.80 followed by 38.50 and lower, while resistance is seen at 48.00 (interim) followed by 51.00 and higher.
Remain long with stop at 38.00, a target is at the level of 56.00.
The material has been provided by InstaForex Company – www.instaforex.com