Crude Trades Through Steep Short Term Channel
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. Crude has pushed through the steepest channel line…the next one of interest is about 32.80. Until then, risk remains for a drop into 25.50 or so.
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