Spectra Energy: Dec1-Jan15 Price Channel. Drop to 20 with oil?Spectra Energy:
A price channel has developed over the last two weeks. A double top on Dec 10 indicated an uptrend that should end tomorrow with the completion of an elliot 1-5 bull impulse. Conversely, an ABC corrective pattern may occur just above the resistance level of 26.
Next, SE will drop towards 21$/share following a drop in oil prices. A drop in oil prices will occur due to strengthening dollar vs developing countries, and a drop in oil prices will occur due to the nullification of export sanctions vs Iran. The 20$ price target is created by referencing the past two bearish impulses and referencing the previous low at 21.50.
Finally, MACD 4C convergence occurring next week. The convergences indicate a major change in price direction.
