The declining NYMEX crude oil price structure continues to bear down along my two optimal price paths toward approaching targets at $50/BBL, which, if violated and sustained, will point toward $42-$40.
Let's notice that the 16-year support line -- off of the 1998 low at $10.35 -- cuts across the price axis at around $45.75.
If the major support line is violated, then it might be difficult to envision a viable target of $42-$40.
Instead, crude might plummet toward a test of its Dec. 2008 low at $32.48.
Again, what will the world look like at $40 or $33 oil? Will it be "fueling" a boom, or be the consequence of a bust?
Mike Paulenoff is author of www.MPTrader.com, a real-time diary of his technical analysis & trade alerts on ETFs for precious metals, energy, currencies, and an array of equity indices and sectors, including international markets, plus key ETF component stocks in sectors like technology, mining, and banking.