Simple and straight to the point. So crude has now touched support at 27.70. What we can expect is another potential rebound before a break below support. Which would ensue another leg lower to $20 crude.
The reason I say there could be another potential rebound at current support is because there tends to be 3 tests of support in a range bound instrument, with the 3rd test of support being the one where there is a break initiating the next leg lower / higher depending on whether its a bearish or bullish trend.
But as always nothing is ever the same in the market, dynamics change, and we could simply see a break down at this level to $20 oil. The market could get especially choppy at this area due to the phsycological $20. Long term shorts will start to reduce positions, and long term bulls could begin to be on the bid for crude. And then you have the retail end of the trading curve which will for the most part enter into unfavorable positions off of greed which would create very short term volatility / short squeezes, etc.
That's my technical analysis on Crude Oil. Risk is to the downside.
The reason I say there could be another potential rebound at current support is because there tends to be 3 tests of support in a range bound instrument, with the 3rd test of support being the one where there is a break initiating the next leg lower / higher depending on whether its a bearish or bullish trend.
But as always nothing is ever the same in the market, dynamics change, and we could simply see a break down at this level to $20 oil. The market could get especially choppy at this area due to the phsycological $20. Long term shorts will start to reduce positions, and long term bulls could begin to be on the bid for crude. And then you have the retail end of the trading curve which will for the most part enter into unfavorable positions off of greed which would create very short term volatility / short squeezes, etc.
That's my technical analysis on Crude Oil. Risk is to the downside.
