Crude Rally Attempt from 2007 Parallel
Chart Prepared by Jamie Saettele, CMT
-“Crude’s bounce stalled at a median line. As such, the 7/29 high is important and can be used as a pivot (bullish above and bearish below).”
-“The 7/29 high was a decent pivot as crude has plunged from that high.” Crude is now at a 6 and a half year low (lowest since February 2009). The next downtrend slope support is probably about 40.60 (extends off of the 2007 low).
-Crude has declined for 9 consecutive weeks. The only other similar streak (since 1987) occurred in 1991 (10 weeks). Following the 10 week decline in 1991, a 3 month base formed that gave way to a 15% rally (from the breakout level…the rally from low to high over 6 months was 30%).
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