When crude oil was trading above $90, the Power of the Pattern suggested that the most important commodity on the planet could trade at least down to $70, due to this important pattern.
A few weeks ago I noted that if crude were to break below this long-term support line, it could then fall to the $35 zone
The above 2-pack takes a look at crude oil and copper, which are both testing support line (1). Each of these lows took place over a decade ago.
So far the decline in crude oil and copper has been totally dismissed by global equities. Will stocks continue to stay strong if these long-term support lines are broken by 5% to 10% below current prices?
At this time, support is support until broken.
In my humble opinion, I feel stocks could end up in trouble if selling pressure picks up on a solid break below support lines (1).