WTIC Crude Oil Sideways Symmetrical Triangle Sideways Channel

Following up from the copper chart, which shows the exact same sideways triangle pattern,  the WTIC crude oil chart is teetering on a break down. The fight at 88 is key. Over the last year, oil has fallen from 110 to 88, almost at the -20% which ushers in a bear market for oil.  Oil fell to 80 last summer, dropping into a bear market, when the ECB and Fed saved the day with more money printing. There is a lot riding on the move in oil right now. A drop from 88 would mimic the copper chart and foretell far lower prices in oil moving forward and also reinforce the idea of a deflationary environment ahead. Analysts are quick to say that a lower oil price will stimulate the economy. Sometimes, yes. A lower oil price can act as a supercharger to an economy that is already undergoing a strong recovery. That is not the case now. The global deleveraging must continue, Europe remains a mess in recession and depression, China is hanging on by a fingernail and the States are stumbling along at best. Folks are more worried about their jobs with stagnant wages, unable to keep up with higher taxes and health costs, than a slightly lower gasoline price.

Watch oil at 88 next week.  A drop under 88 and lower should usher in an increased disinflationary and deflationary environment. The sideways red channel may come into play as the weeks and months continue. This information is for educational and entertainment purposes only.  Do not invest based on anything you read or view here.  Consult your financial advisor before making any investment decision.