WTIC West Texas Oil Daily Chart

Oil tumbles from 107 to 96 over the last few days after the upward-sloping channel failure.  Oil has moved sideways thru 95-110 since last Halloween. The 200-day MA is 96.35 so this 95-97 zone is critical. On Monday price pierced down thru the 200, but closed above. On Tuesday, same-o. Yesterday, price pierced under again but only managed to close pennies above the 200-day MA. This moving average is holding as support but this may not last forever. The very nature of a sideways 200-day MA is not encouraging. If oil was bullish moving forward the 200 should be sloping up more.

The money flow over the last month shows some slight positive divergence so this may enable a dead cat bounce for oil over the next day or two, reinforced by the 200-day MA support holding. But, note the other indicators (red lines) over the last month, weak and bleak, lower with the lower prices. This forecasts that after the dead cat bounce, oil will likely move lower and should fail the critical 95 representing the lower rail of the sideways channel. The 93 and 91 levels are important support levels as price fails lower. If the low 90's is lost for oil, that forecasts far lower numbers ahead and a global economy mired in deflation. Focus on the 200-day MA support as well as 95 support. Watch the slope of the 200-day MA moving forward. Projection would be a dead cat bounce now but lower numbers are anticipated moving forward. 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.