Since the beginning of 2018, the commodity gained more than 22.5%, although last week rose almost 0.4% and remains in a bullish phase since late June.
Last week crude oil went back and forward without any clear direction, however, managed to close in the middle of the weekly range, but closed within the previous week range, which suggests being clearly neutral, neither side is showing control.
Stochastic is showing an overbought market, nonetheless, is still displaying a strong bullish momentum.
After the two weeks of strong bullish momentum, the commodity as come to a stop, which does not mean that, is reversing just that is taking a pause, a time correction if you will.
Expecting a downward move to a 61.8 Fibonacci expansion at 72.60 on a bounce from a weekly resistance at 75.32 (scenario 1), however, a bounce from the 61.8 Fibonacci expansion at 72.60 may trigger another bullish run up to the 100 Fibonacci expansion at 78.29 (scenario 2).