Crude Oil (Spot Price) Faces Possible Resistance Within Falling Wedge (daily chart) - UPDATE 1/15/2016

UPDATE 1/19/2016:

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Down another 4 percent today after breaking below the falling wedge (red lines).  Not a great start to the week for crude oil.  

Will it hit $25?  If so, will support hold? We will have to see.



UPDATE 1/15/16:

click chart to enlarge

The above chart shows that resistance was successfully tested, the falling wedge (solid red lines) broke and $WTIC quickly fell.  The next apparent support line, which may form the base of a large channel (solid blue lines) is at about $25/barrel.  Coincidentally this is also the base of steeply falling channel on the weekly chart here.




ORIGINAL POST:

click chart to enlarge

The daily chart above shows that crude oil ($WTIC - spot price) has been moving down within a falling wedge (solid lines) since mid-2014.

In addition, after recently moving up off the base of the wedge, $WTIC is now up against possible long-term resistance (formerly support - the lower dashed line).

Eventually the wedge will break since the lines are converging.  When the wedge breaks, will $WTIC reverse its relatively steep downward trend or continue its decline in a precipitous manner?  Stay tuned.
 

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The author/publisher has no position (long or short) in oil at the time this article was written. This position may change depending on future price action.

Base Chart Provided Courtesy of StockCharts.com.  Analysis and Annotation by JunkBond Recycling.com (all rights reserved)