The price of oil has rebounded over the last few hours. Is a bottom in place? To know for sure the price action has to prove it. What would give those clues?
First off at the lows, the price was testing a lower channel trend line. The inability to sustain any selling is a good sign for dip buyers.
The rebound has the price back above the close from yesterday at 55.60 and also had a look at the topside trend line at 57.54 (the high came in at 57.37 so far). This might be expected on the first look .
Oil is uff the lows but found sellers at the top of the trend line on the first look.
The midpoint of the days range is 55.63. With the close from yesterday at 55.60, this is now a nice risk level for traders looking to give a shot at buying a low.
The current price is at 56.00 area. The 38.2% is at 56.04. Look for corrective dip buyers in this area with stops below the 55.60 level now. If the buyers want to take control, they should look toward this area as a level to buy. If not, don’t mess with it.
Oil rebounded and is down testing the 38.2 of the move higher.
