Happy Friday oil traders! I wanted to take a longer look at oil. In the near term I see a short coming if we break the new support level we appear to have established. In the long run, oil has a stable support level in the $51.40 range, but I believe it will be some time before we see those levels again. In the mean time, you can see oil has hit a resistance around $43.70 and has been moving in a channel going down around $36.60. This support is not long term, in my opinion and with recent changes in the stock market and the drop in the dow and S&P, I believe it will break the new support level and return to a greater support level around $25.20 before returning to the $40 range.
Let me know what you think, please comment or leave a like. Remember to trade responsibly and have a great weekend!
thank you