Crude: new lows right around the corner

FX:USOIL   Crude Oil (WTI)
68 0 1
I'm republishing my analysis on the front month crude futures $CL1! on the FXCM             WTI spot price chart so those without premium accounts can view my analysis with intra-day moves. I've also updated the analysis since, crude fell through the 50 level.

One is hard pressed to find a macro bull case for crude. Supply is poised to rise, demand is looking to slow, and the dollar looks ready for another leg higher. Longer term, I still believe we'll see new lows in oil             and the technicals make an easy case for a full retracement of this Spring's ascent.

Yesterday, crude collapsed through important support, which coincided with both the psychologically important, 50 level and the 61.8% fib retracement (49.84). We waited for a bounce off of 50 back up to the 50% fib retracement (52.24) that never came that has confirmed the trend downward is intact. The breakdown below 49 will usher in another leg down, targeting 46.86. This could be a rather steep descent if we see the dollar index             break out above resistance at this week's high ~98.30.

I've been short, and was poised to add to that short on a move below 49.84, targeting 46.86 with a stop at 51.04. Yesterday, I added a third to my short position and will continue to target 46.86, but will watch the 47.53 level as this has historically been a resistance point.
English (UK)
English (IN)
Bahasa Indonesia
Bahasa Melayu
Tiếng Việt
Home Stock Screener Forex Signal Finder Cryptocurrency Signal Finder Economic Calendar How It Works Chart Features House Rules Moderators Website & Broker Solutions Widgets Stock Charting Library Feature Request Blog & News FAQ Help & Wiki Twitter
Profile Profile Settings Account and Billing My Support Tickets Contact Support Ideas Published Followers Following Private Messages Chat Sign Out