Is Crude Oil Bottoming?

Crude oil has fallen more than 50% since May of 2014. It is now approaching a 15 year supportive trend line that can be traced back to 1999. This line says that support may be found in the vicinity of $45-$47. This is also a price range OP has been mentioning on his tweets. As I write this, oil is trading at $48.26. We are very close.

Is Crude Oil Bottoming?

However, we have not seen any price action that says the buyers are coming back. If this trend line does not hold, the next target will be $40.

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As crude oil moves into these regions of significant support, the risk reward of shorting oil becomes less and less attractive. I will be looking for a bounce or some form of consolidation over the next few weeks.

Cheers,
Ethan


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