Oil Index Technical Outlook

CBOE Oil Index: Oil has been trending up since October last year in a choppy way without clear indication of future tendency. Oil has crossed an important Fibonacci resistance level and may be in route to reach the 895 level, however a divergent MACD indicator may mean it is getting out of steam and may likely rebound to support levels of 817 and then 769. In the very short term, oil has reach the important 816 Fibonacci levels. Two possible scenarios are in line: One where oil rebounds and keeps in the upper trend with a view of the 900 levels and one where it breaks down the current resistance level and falls to the 793 and then 766 levels.