Saturday, November 29, 2014

Oil: So Where Does the Decline Stop?

Right here (for now).
After settling at $66.15 the Jan. futures drifted down to $65.99 in late trade.
From our Nov. 14 post "Chartology: Four Possible Stopping Points For the Decline in Oil Prices":
Our target is $70 but like anything involving humans, that could change.
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....
Countertrend and then lower.
More to come.