Friday, August 7, 2015

West Texas Light Crude (WTIC) - Breaking Very Long-Term Dual Support Lines on Weekly Chart

As the 20-year-long, weekly closing price chart below shows, West Texas Light Crude (WTIC) appears to have broken dual rising support lines (green), one of which extends back nearly twenty years. 

WTIC's latest plunge came after testing former support as resistance (red line on main chart) and rebounding off oversold conditions to test momentum resistance (RSI - upper chart).

WTIC was down almost 6.5% this week and WTIC is again moving into oversold conditions per RSI.

What's next for WTIC? The future is impossible to predict. However, breaking major support could trigger much more selling if WTIC does not regain these support lines quickly.  There could also be a rally, sooner or later, that retests these support lines as resistance before even lower prices occur.

In any case, eventually we shall see where oil prices end up.

click chart to enlarge

Not Investment Advice | Important Disclaimer: 
The content in this article, including the identification and discussion of any specific security (e.g., bond fund), is NOT meant to be and should NOT be construed and/or used as investment advice. This article is for general information and educational purposes only. Please read the Disclaimers  for in their entirety. The U.S. Securities and Exchange Commission website has guidance on selecting an investment adviser.

Financial Disclosure:
The author/publisher has no position in oil at the time this article was written.

Base Chart Provided Courtesy of  Analysis and Annotation by JunkBond (all rights reserved)

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