Oil Suffers As Global Pressure On Commodities Rises
Admirals | Apr 22, 2013 08:29AM ET
The global situation on commodities has been the top story recently, so let’s take a closer look at the Light Sweet Crude Oil chart. The Daily chart clearly shows us a big triangle formation that was filled by a downswing in the beginning of the past week. The downswing was technically promoted by the Head and Shoulders formation created in the second half of March.
The minimum target of the H&S formation was already fulfilled on Thursday, so there is a chance for a minor bullish reversal, especially as the price reached the support from the end of 2012 at 85 USD/bbl. The second important support is 84 USD/bbl. The closest resistance is 88.90 USD/bbl.
The scenario stays OInegative and it is more likely that after a minor correction movement, traders will continue to sell Oil reaching new long-term minimums.
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