Crude Oil Analysis With Fibonacci & W.D. Gann
Crude Oil
The chart below is key to this analysis.
There are two methods we use at ONE44 to find support and resistance in the markets.
The first are major Gann squares, these are the yellow horizontal lines on the chart. On the chart you can see where the market turned multiple times at these levels.
The second is Fibonacci retracements and this is what most of this post will be about.
There are a few basic rules when using the Fibonacci retracements with the ONE44 rules and guidelines.
This is the short version.
A 38.2% level keeps the trend intact and new highs/lows should follow.
A 23.6% level shows the market is extremely strong, or weak.
A 61.8% level can cause wide swings and keep the market in a trading range.
A 78.6% level can send it 78.6% of where it just came from and even be the end or start of a Bull market.
We have done 44 videos on how to use the Fibonacci retracements with the ONE44 rules and guidelines. These Videos are worth watching even if it is not in the market you are trading, as the ONE44 rules and guidelines are the same for every market. You will also see why we believe the Fibonacci retracements are the underlying structure of ALL markets.
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12/15/24
CLF25
From last week,
The rally from 67.70 this week fell short of the 78.6% level at 71.20, the high was 70.51 and Friday closed below 67.70. It is still above the 78.6% level at 66.80 that it hit on 10/29/24 and 11/18/24 and this will be key for next week. All of the Above/Below is the same.
Use 66.80 as the swing point for the week.
Above it, the long term target is 74.60, this is 78.6% back to the 10/8/24 high and would complete the 78.6% (66.70 on 10/29/24 and 11/18/24) to 78.6% target. Any rally that can't get above the previous 78.6% level at 71.20 is a negative sign and a retest of the lows can follow.
The rally above the 66.80 swing point closed above 78.6% at 71.20 and this will be the key level for the next week.
Use 71.20 as the swing point for the week.
Above it, the long term target is 74.60, this is 78.6% back to the 10/8/24 high and would complete the 78.6% (66.70 on 10/29/24 and 11/18/24) to 78.6% target.
Below it, look for the wide swings between 78.6% retracements to continue at 68.00.
CLG25
February has held the 78.6% level between the 9/10/24 low and 10/8/24 high at 66.50 for the third time, the first was on 10/29/24 and the second on 11/18/24. This week's rally fell just shy of the 71.21 major Gann square and this level will be key for the next week.
Use 71.21 as the swing point for the week.
Above it, look for it to complete the 78.6% (66.50) to 78.6% level at 74.30 per the ONE44 78.6% rule. On an extended move higher look for the next major Gann square at 79.99.
Below it, it is unlikely to hold 66.50 again, so look for the next major Gann square at 63.25. On an extended move lower look for the area of 61.8% on the continuation chart at 57.75 and the 55.98 major Gann square.
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Our goal is to not only give you actionable information, but to help you understand why we think this is happening based on pure price analysis with Fibonacci retracements, that we believe are the underlying structure of all markets and Gann squares.
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