CommoditiesTrader

Crude's Carnage to Continue and Break the 2009 Low

NYMEX:CL1!   Light Crude Oil Futures
Please check out the full, original post chalk full of information: http://oilpro.com/post/17335/crude-carna...

.... On a market technician's viewpoint, if fundamentals do not shape up quick with support from consumption economies, like the U.S. and China, crude could break 2009's low of $33.20 per barrel.

I also expect the dollar to continue to rise, increasing deflationary pressure throughout 2016.

Price support is currently $42.02, just $2.22 per barrel less from where it is trading today. 2008's high of $147.27 per barrel creates a "V" shaped support and resistance price channel , which will likely hold prices.

If prices break through this key support level , selling could amplify if there is no catalyst to bring prices back north. A "demand" zone - an area where confirmed buying took place - between $38.34 and $34.04 will be the last line of defense for crude prices.

A close below this level, and a target of $27.14 per barrel is initiated.

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Comments

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paulyberndt CommoditiesTrader
The deflationary spiral continues in oil. The MidEast countries and Russia have to pump more just to keep their economies going now. The price wont change until something happens in a central bank policy imo
+1 Reply
US shale won't stop pumping. Just think, two barrels have to be pumped today just to equal the revenue collected from one barrel just last November. Wall Street doesn't get it.
+1 Reply
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