SIDEWAYS TO DOWN before NY Open
The most recent peak and trough in WTI crude oil price share a similar characteristic. The high traded slightly above a resistant level and the trough traded just below a support level.
These false breaks may suggest that market liquidity is running toward stop loss take-outs, rather than building positions. From a technical perspective, this could indicate a market that lacks bullish or bearish conviction and is focussed on minimising losses, for now.
Those stop loss take-outs have created a potential resistance zone at 108.75 – 109.20 and possible support area at 93.53 – 92.93.
The oils correlation and sentiment both point towards a move down later on or tomorrow, however.
These false breaks may suggest that market liquidity is running toward stop loss take-outs, rather than building positions. From a technical perspective, this could indicate a market that lacks bullish or bearish conviction and is focussed on minimising losses, for now.
Those stop loss take-outs have created a potential resistance zone at 108.75 – 109.20 and possible support area at 93.53 – 92.93.
The oils correlation and sentiment both point towards a move down later on or tomorrow, however.
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