The crude oil market this week reached a technical point that has been the downside objective for this current downtrend.
This technical point is a 16-year trend line support that begins in 1998 at a 10.35 low and extends below two successive lows the latest being in December 2008 when the spot market bottomed out at a 32.40 low.
The low set this week at 44.20 by the spot February 15
contract held above support, at least on the first test.
Whether or not this trend line support can hold in
upcoming trade will be a key technical test for the market.
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