More bloodletting in the stock market set the tone for the commodities sector in Monday's trading, with nearly all markets trading in the red as European and US equities plunged. The energy complex appears especially hard hit by the bearish price action. US Crude Oil futures corrected sharply and may be on track for an approach to the major support, identified on the Autochartist Key Level platform as illustrated here on the 240-minute candlestick chart.
This key level at $91.70 per barrel had served as a pivot point during the long sideways trading range that preceded the most recent rally. Once a meaningful breakaway from this level was achieved, the steady uptrend carried the price sharply higher to close above $100 per barrel for the first time in months.
The retracement from that swing high has the momentum and apparent selling pressure that often indicates a correction from a major top, Though the oil complex is likely to move in tandem with stocks or the near-term, an eventual retest of the $91.70 key level support appears likely given the rapid rate of collapse in price over such a short time span.
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