These two supports are identified respectively as the 138.2 percent and the 150 percent Fibonacci projection levels of downtrend that developed from the Dec. 1, 2014 high of $69.54.
The trend is a part of a bigger trend falling from the Nov. 21 high of $77.83. Five small waves make up the trend, with the current wave 5 expected to eventually travel a similar distance as the wave 1, to roughly arrive at $44.65, the 176.4 percent projection level.
Oil has briefly pierced below $50.04.
However, only a drop below the Jan. 5 low of $49.68 could confirm a break below this support. Rebound may be capped at $50.76.
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