Analyst Paul Ebeling of www.livetradingnews.com takes a look at Oil Prices
Crude Oil could challenge $80 bbl again
Crude Oil has been in free-fall, it broke down more Wednesday after breaking Key support on Tuesday.
December Crude futures on NYMEX were down 0.95 or 1.1% to 85.72, this 85 mark is important, if it does not hold, 80 Crude Oil is next.
Take a look at the ino.com chart going back 6 months see below.
The price level of 85 bbl for WTI is a crucial mark. When Crude Oil tanked in May you can see that 85 became the Key area in June. When prices fell under 83, they quickly went down to under 80 before finding the bottom and stabilizing.
Normally folks would be happy that Crude Oil prices are declining, the problem is that Crude Oil prices are sliding due to demand destruction, not supply issues. This is due to a continuing concern about the global economy.
Watch trading in Crude Oil Thursday because it is at a critical mark now. If prices do not stabilize then 80 bbl could well be next, and lower. Stay tuned…
Paul A. Ebeling, Jnr.
Paul A. Ebeling, Jnr. writes and publishes The Red Roadmaster’s Technical Report on the US Major Market Indices, a weekly, highly-regarded financial market letter, read by opinion makers, business leaders and organizations around the world.
Paul A. Ebeling, Jnr has studied the global financial and stock markets since 1984, following a successful business career that included investment banking, and market and business analysis. He is a specialist in equities/commodities, and an accomplished chart reader who advises technicians with regard to Major Indices Resistance/Support Levels.
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