Oil is testing a major resistance level at 58.50

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Oil is testing a major 1:1 (White) and 23.6 Fib resistance level at 58.50, this resistance level will be closely watched by Elliott Wave and Gann traders looking to reinstate shorts in this down trend.

As long as the market stays below this level look for selling to pick up on the downside as the market pushes for a test of the 41.85 low. However any break above this 1:1 (White) will likely see short covering pick up with the next resistance not seen until 67.08.

* A 1:1 refers to a current correction being equal in length to a prior correction

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Reece Marini is an FX trader and Director of the http://forexhft.com an instant Forex rebate and Signal provider, if you would like to subscribe to our daily reports you can do so here its FREE

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