Crude Oil; Bigger Reversal Prospects Get Interesting Above 33
Chart Prepared by Jamie Saettele, CMT
-The last update on crude noted that “while sentiment and momentum are certainly at a point that could lead to a ‘bounce’ for crude oil, meaningful long term support may not reside until the mid-20s as per the combination of long term slope and horizontal levels from 2002 and 2003. The test for this bounce is a former support line, which is about 33.50 over the next few days. A push above that level would be viewed as a positive development.” Crude has bounced and the big test for this market is still just above 33 although volatile conditions could certainly lead to an ‘overshoot’.