This Weekly chart of WTI Crude Oil Futures says it all.
Oil is sitting just above a major price and Fibonacci Confluence support level of 75.00 (as I write this on Tuesday at 3:45 pm)…a break and hold below 75.00 could see it drop to around its next support level of 64.50.
Furthermore, we may see a bearish Death Cross form soon on this timeframe…should that occur (or even sooner in anticipation of that event), price may briefly pop up to re-test the cross-over level around 96.00 before plunging to, potentially, new depths.
The last time it broke below 75.00 was October of 2008 (during the financial crisis) when it sliced straight through the 200 MA. With volumes increasing over the past few weeks, we could see some fairly volatile price swings enter soon…one to watch.
