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Oil Continues To Exhibit Constructive Technical Set-Up

Published 09/13/2016, 12:07 AM
Updated 07/09/2023, 06:31 AM

Bottom line: Unless and until Oil breaks below $43.00—the September 1 low—my medium-term pattern and momentum work argue that all of the action off of the June high at $51.67 represents a major digestion period within an incomplete recovery period off of the February low at $26.05, which projects to $60.00 - $65.00.

With the foregoing in mind, heavy and important support resides between $45.00 and $44.00, which, so far, has contained the selling pressure off of last Thursday (Sept. 8) high at $47.75.

The longer Oil holds in the $45.00-$44.00 area, the more likely my medium-term bullish set-up will begin to unfold in the days ahead—a thrust to new February-June highs above $51.67 towards $60.00 – $65.00.

Hourly Crude Oil

Latest comments

Thanks very much for this article Mike. But now that WTI is hovering just above/below $43, does your hypothesis still apply? Or are we off in yet another direction? (As at 12:58 PM New York Time)
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