Short term bounce, before moving to $40-$37...?
Crude Oil West Texas Intermediate($49.62)
Oil has dropped over 67% in just 4 months. See the inlaid daily chart; the fall was confined to perfect falling parallel channel drawn from the top.
The recent low is quite close on the lower end of the channel, indicates a respite for the Oil bulls in the near future, provided holds $47.5/$48 area. On the upside $53 is critical & if able to sustain above it then could flare up to $60-$63 in the next few weeks.
However, the medium to long term picture continued to remains bearish. See the inlaid monthly chart. Since 1990, $37-$40 has acted as a good resistance while moving up; now the same will act as a "support" for the medium term. To conclude, I am looking for a relief rally if holds $47.5/$48 mark; while the upside is caped at $60-$63 range; & then a likely failure towards the long term support zone. Let see.
The recent low is quite close on the lower end of the channel, indicates a respite for the Oil bulls in the near future, provided holds $47.5/$48 area. On the upside $53 is critical & if able to sustain above it then could flare up to $60-$63 in the next few weeks.
However, the medium to long term picture continued to remains bearish. See the inlaid monthly chart. Since 1990, $37-$40 has acted as a good resistance while moving up; now the same will act as a "support" for the medium term. To conclude, I am looking for a relief rally if holds $47.5/$48 mark; while the upside is caped at $60-$63 range; & then a likely failure towards the long term support zone. Let see.
