The weakness in crude oil would translate to weakness in Oil & Gas stocks on our local bourse. Thus, we should be careful in taking large position in these stocks.
Chart: WTIC's daily chart as at Jul 3, 2015 (Source: Stockcharts)
Monday, July 06, 2015
WTIC: Crude Oil rally may have ended!
WTIC broke its "pennant" formation (ABCD) at USD57.50 two weeks ago. This downside breakout of a consolidation pattern turned the pattern into a reversal pattern. This means that crude oil prices are likely to enter into a downtrend. The first stop is at the horizontal line at USD54. we can only hope that at this strong support crude oil would recruit sufficient buying support to launch into a more gradual uptrend. Failure to do - accompanied by a breakdown of the USD54 support - could send the market to re-test the January & March lows of USD44 again.
The weakness in crude oil would translate to weakness in Oil & Gas stocks on our local bourse. Thus, we should be careful in taking large position in these stocks.
Chart: WTIC's daily chart as at Jul 3, 2015 (Source: Stockcharts)
The weakness in crude oil would translate to weakness in Oil & Gas stocks on our local bourse. Thus, we should be careful in taking large position in these stocks.
Chart: WTIC's daily chart as at Jul 3, 2015 (Source: Stockcharts)
Subscribe to:
Post Comments (Atom)
1 comment:
If this is true than I am expecting to see something good in crude oil business. Thanks for sharing.
Post a Comment