Breaking News
0

Crude’s Crashing — $35 In Sight?

By Chris KimbleCommoditiesNov 28, 2014 10:51AM ET
www.investing.com/analysis/crude%E2%80%99s-crashing-%E2%80%94-$35-in-sight-234054
Crude’s Crashing — $35 In Sight?
By Chris Kimble   |  Nov 28, 2014 10:51AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

 

Crude Oil's Potential Supports
Crude Oil's Potential Supports

About 60 days ago the Power of the Pattern suggested that the "most important commodity on the planet" should be on its way to the $70 zone if the bottom of the pennant pattern broke support.

Well, some 64 days later and crude oil has broken the bottom of the pennant pattern and has hit that $70 target. On the chart above you can see that two "potential support" points (channel support and Fibonacci 38%) meet at the $65 zone. 

Over the past two months, I've been suggesting two things -- crude oil should be shorted and it could reach these levels and it would end up impacting the stock market in a negative way. I have been right on the trade and, so far, very wrong on its global impact.

Pay Attention!

If support line dating back to the late 1990's doesn't hold, crude's next important channel support comes into play around $35. 

In my humble opinion, this is not only a critical support test for crude, it's a test for the macro picture as well. Should crude bust through support and find itself working toward the $35 level, I would be shocked if it doesn't end up impacting stocks in a negative way -- sending the message that the world is slowing down.

Crude’s Crashing — $35 In Sight?
 
Crude’s Crashing — $35 In Sight?

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments
Dec 02, 2014 9:48AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
if Crude at 35$ then All currency will be depreciated to max like USD/RBL.
Reply
0 0
Dec 02, 2014 4:28AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
On a cloudless night you can sometimes see the moon!
Reply
0 0
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email