Crude Oil Is Headed for $82… At Least
- Posted by Greg Harmon
- on October 24th, 2012
West Texas Intermediate Crude Oil has been pulling back from a high near 100 since early September. And it has been dragging the market lower with it lately. How low will it go? From the Fibonacci Speed lines in the chart below the support at 82.34 near the 200 day Simple Moving Average (SMA) seems to be a lock. But it gets really interesting if it breaks that level. The next
support lower is not found until about 65 from this perspective. There is support along the way at the previous low at 75.60 and much congestion between there and 65 so this is far from certain. Shudder to think what that means for the broad market if the correlation to Crude oil remains significant.
Join the Dragonfly Capital Views Premium Membership
Sign up here to get deeper analysis and nearly 50 trade ideas every week.
If you like what you see above sign up for deeper analysis and trading strategy by using the Get Premium button above. As always you can see details of individual charts and more on my StockTwits page.
The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.blog comments powered by Disqus
Gregory W. Harmon CMT, CFA, has traded in the Securities markets since 1986. He has held senior positions including Head of Global Trading, Head of Product Development, Head of Strategy and Director of Equity. (More)
Dragonfly Capital Updates
- Top Trade Ideas for the Week of March 10, 2014: The Rest
- Top Clicks on Dragonfly Capital this Week
- Top Trade Ideas for the Week of March 10, 2014: The Rest Premium
- Top Trade Ideas for the Week of March 10, 2014: The Best
- SPY Trends and Influencers March 8, 2014
- Cleveland’s Best Linkfest!
- Macro Week in Review/Preview March 7, 2014
- Top Down Options Trading, Risk Management, and Collars
- Time to Sell Corn?
- Long Term Pick of the Week: Bridges, Iron and Voodoo