Crude Closing in on Level for a Major Low
Chart Prepared by Jamie Saettele, CMT
-The last few crude updates noted that “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…volatile conditions could certainly lead to an ‘overshoot’.” Crude ‘overshot’, trading to 34.79 before turning down. A break above the resistance lines (short term channel and former downtrend support line) is still needed in order to open up 38.00s. Until then, risk remains for a drop into 25.50 or so.
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