Crude Finishing May at Underside of 18 Year Trendline
Chart Prepared by Jamie Saettele, CMT
-“Crude is constructive as long as price maintains the bullish structure that has defined supports since early April. The October 2015 high is at 50.88, which is where the rally would consist of 2 equal legs from the February low (51.06). Weakness below 42 would negate the near term upside bias.” There isn’t much else to add other than noting that the current level is marked by the underside of the 1998-2001 trendline. This line was precise support in 2009 and support (although not precise) in early 2015. The risk is that former support provides resistance.
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