Monday, August 10, 2015

WTIC: Too much of a good thing can be bad!

WTIC looks set to test the lower line ("BD") of the expanding triangle ("ABCD") at USD40 (see Chart 1). This is a strong support as it is the intersection of the horizontal line & the long-term uptrend (SS) [see Chart 2]. If WTIC can break thru this support, it could revisit the 2008 low of USD33.55.

 Chart 1: WTIC's weekly chart as at Aug 7, 2015 (Source: Stockchart)

Chart 2: WTIC's monthly chart as at Aug 7, 2015 (Source:

The market has come to accept that crude oil is not likely to stage a strong recovery in the near future. This is the new normal, brought on by lower demand and increased supply. The depressed crude oil market is the result of an era of  easy & cheap money that led to over-investment and overcapacity. We can see the same problem afflicting many other commodities or sectors or industries due to over-investment.Even the crowd favorite, Apple is staring at a possible break of its uptrend.

Chart 3: AAPL's weekly chart as at Aug 7, 2015 (Source: Stockchart)

In addition to the disclaimer in the preamble to my blog, I hereby confirm that I do not have any relevant interest in, or any interest in the acquisition or disposal of, AAPL.

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