Earlier in the month we missed two critical demand areas where price could have turned back up. But due to low demand and price kept falling significantly. The demand areas are shown by the green boxes where price failed and demand dropped. We are likely to descend below the red support line area where price tried to stabilize. But friday we eventually broke below that level. So for now only support we are left with is at 41.56. Any time the price touches the purple line trend line up top sell till 41.56. If the price breaks the trend line up top than buy till demand area 1 and 2.
Thanks smitheric 1970, its a nice play here now we look to bounce back to the trendline one or two, if it retraces again we can sell till our expected target of 41.56. Supply right now seems to be cutting demand
Jul 13, 2016 -2.5M -2.3M -2.2M
Jul 7, 2016 -2.2M -2.1M -4.1M
Jun 29, 2016 -4.1M -2.3M -0.9M
Jun 22, 2016 -0.9M -1.3M -0.9M
low demand for and output for june july seems to be pushing prices lower. Plus keep an eye out on usdjpy pair in comparison it is a good indicator right now to follow oil performace over all.
smitheric1970
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good analysis, I agree with your support/buy level if prices continue to fall; however, I think prices are still at a demand/support level set in May and will rise from here. Good trading to you!
Jul 13, 2016 -2.5M -2.3M -2.2M
Jul 7, 2016 -2.2M -2.1M -4.1M
Jun 29, 2016 -4.1M -2.3M -0.9M
Jun 22, 2016 -0.9M -1.3M -0.9M
low demand for and output for june july seems to be pushing prices lower. Plus keep an eye out on usdjpy pair