The support is provided by the 61.8 percent Fibonacci projection level of a downward wave C which has been driving oil from the March 7 high of $109.09.
Given that the support at the 38.2 percent projection level of $107.17 has triggered a decent rebound, the current support may cause another one towards $106.58, the 50 percent level, or to $107.17.
Most likely, oil may consolidate in a narrow range of $105.99-$106.58 for one trading session before falling again.
The views expressed are his own.
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