Crude Back at Resistance Line
Chart Prepared by Jamie Saettele, CMT
-Crude has declined for 10 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%).
-“Crude has rallied from support…to resistance in 1 day. A break above here targets the median line near 47.” Crude reached the median line and is plunging from that median line. The slope presented above has caught every important turn over the last few months…so follow it! Support could come in near 42.01/15.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.