We just experienced a noticeable weakening of the dollar feeding into:
Dec. WTI $75.15 up 94 cents; Brent $79.50 up $2.01.
From Dragonfly Capital:
The sun seems to be setting on Crude Oil ($USO, $CL_F). It has had a quick run lower for a price of about $108 down to $74 per barrel in less than 5 months. The bad news for those looking for a turn around is that the technical picture still looks bleak. The momentum indicators are pointing lower and the RSI (top scale) has only just moved in the bearish zone. With that backdrop there are 4 important spots to watch if there is more downside.
Crude is in the middle of the first price zone from $72 to $75 per barrel. This range has shown to be important on the way higher in 2006 and as support in 2011 and 2012. Perhaps it will act as support again and we can forget about the levels below.
The second level is at $66 per barrel. Looking left on the chart you can see a significant difference in volume of crude that has traded above this level and below it. Without much price history below $66 a loss of this level could be significant....MORE