A Fibonacci retracement analysis on the fall from the Oct. 29 high of $87.94 to $76.76 reveals oil failed again to break resistance at $79.40, the 23.6 percent level.
The drop from the Nov. 18 high of $79.95 signals a continuation of the preceding downtrend.
A break above $79.40 will open the way towards the next resistance at $81.03, the 38.2 percent retracement, while a drop below $76.76 could extend to $74, a level pointed by a descending trendline.
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