Oil chart looks bearish

October 10, 2013No Comments

Earlier this year (January 3rd, 2013), I wrote a blog suggesting that crude’s breakout from the triangle might target around $110/barrel. This is the chart that I printed, with my original target noted on the chart. Here’s the blog: https://www.valuetrend.ca/?p=1754

Technical targets do often work out!

oil long

WTI is currently breaking down from a consolidation pattern . Support, which came in around $103-$104, was recently broken. Relative strength was trending down, although a bit of reprieve has come in as the S&P500 sold off recently. I don’t see this as a bullish sign–more a sign of stock weakness than a sign of oil’s strength. While s/t momentum indicators are oversold, indicating s bit of near termed upside – the picture is not pretty thereafter. Seasonal patterns for oil slow down at this time of the year. And the decided break of the 50 day MA targets $98 – where old resistance (new support) and the 200 day MA come into play. I’m avoiding oil at this time. Traders may want to utilize any rally as an exit point.

oil short

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