The 16-year trend line support on the weekly crude oil chart
which was broken near 43.00 two weeks ago was confirmed in last week’s trade as
the market held under this former support as resistance.
The crude oil market last Friday traded under the 40.00
level for the first time since February 2009.
With trend line support broken, the 32.40 low set in
late-December 2008 now becomes the next downside objective.
Former trend line support currently between 43.00-44.00 now
becomes key resistance. A rally and sustained close back over this level
by the spot crude oil contract should indicate a market low is in place.
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