The next few weeks will be technically important for both
the crude oil and heating oil markets as the crude oil market nears
16-year trend line support.
This trend line support on the weekly chart currently
between 44.00-45.00 basis the spot September 15 contract was tested two
times previously in 2015. The first time was in January followed by a
42.03 low set in mid-March.
For a third time this year, trend line support should be
tested. If support holds and crude oil holds above 44.00-45.00, a long
term low could be set in the crude oil and heating oil markets.
However, if trend line support does not hold, the 32.40 low
from December 2008 will become the next longer term support for the crude oil
market. The December 2008 low coincided with a heating oil spot low
just above the 1.1200 level.
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