Crude Breaks Down but Be Aware of Possible Channel Support

Daily

Chart Prepared by Jamie Saettele, CMT

DailyFX Trading Guides and Forecasts

-The last update noted that “crude is constructive as long as price maintains 45.82 (6/17 and 6/27 lows). The next area of trouble looks like 54.21-56.49 (early 2015 highs and May 2015 low). Weakness below 45.82 would delay the constructive outlook.” Today’s break below 45.82 delays the constructive outlook. The measured target from this breakdown is 41.12, which is just under a chart level at 42 (March 2015 low and March 2016 high). Pay attention to possible parallel channel support just under 44.

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