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Which Way Oil?

Published 09/13/2016, 01:15 PM
Updated 07/09/2023, 06:31 AM

In the aftermath of Monday's upside reversal, the EIA issued a negative report about oil demand, which put some hurt on the price of W&T Offshore (NYSE:WTI) reversing Monday's strength and pressing price down toward a retest of Monday's pivot-low at $44.77, and thereafter a possible test of the Aug.-Sept. support line, now in the vicinity of $44.35.

My pattern and momentum work argue that the $44 area should contain any additional weakness ahead of the emergence of another upleg, which will thrust out of the sideways-coil-type pattern that has been carved out since the Aug. high at $48.75.

To confirm an end to the coil pattern, oil needs to climb back above $46.50.

1-Hour Crude Oil

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