Oil continues to stay range bound finishing the week down -2.17%. This is on the back of economic reports of a shrinking Chinese Economy and it’s consumption of Oil going down. Analyst measured China’s economy shrinking by 6% year to year in Q3, making Oil market participants slightly pessimistic on it’s move higher.
From a technical perspective, Oil squeezed out our shorter term Bear Channel to see a move higher. With it’s consolidation continuation we could see price grind around $52.50 and $55.00 in the next few weeks before the 3 touches of the support range is completed. We may see one additional touch of the $50.50/$51.50 range.
THE PLAY: We are bearish below a price print of $50.80 and lower.
From a technical perspective, Oil squeezed out our shorter term Bear Channel to see a move higher. With it’s consolidation continuation we could see price grind around $52.50 and $55.00 in the next few weeks before the 3 touches of the support range is completed. We may see one additional touch of the $50.50/$51.50 range.
THE PLAY: We are bearish below a price print of $50.80 and lower.