WTIC West Texas Crude Weekly Chart; WTIC Oil and Brent Oil Slip into Bear Markets

Oil is about to set a record for the sharpest fall in the quickest amount of time. Look at those red candles. Price bleeds lower for five solid weeks from the upper standard deviation band to the lower band. The middle band at 69.14 is on the table going forward.

The red lines show the negative divergence that slapped oil lower off the tops. You could see it coming a mile away. Indicators remain weak and bleak. Stochastics now oversold and agreeable to oil setting up for a bounce. Price may need to base for a couple weeks or more. The support at the blue line at 59.15 is on the table. Two hours ago, the action was dramatic;

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From Keystone the Scribe, Friday Morning, 11/9/18,

At 5:17 AM, WTIC oil falls below 60 to 59.91 and begins flushing lower. Oil is mired in a bear market. The Iranian sanctions are priced-in to oil markets but the waivers issued by the Whitehouse will create higher supply; hence, prices collapse. WTIC oil 59.77.

At 5:43 AM EST, boom. The bottom falls out in oil. The oil bulls are running for their lives. WTIC oil plummets to 59.28 and then spikes higher. That was a mini flash crash from 59.77 to 59.28. WTIC oil pops to 59.53 and climbs out of the hole. Brent oil collapses to 69.13 then recovers to 69.58 climbing higher. The world is awash in oil and global demand may not be as robust as touted. Falling prices are disinflationary and deflationary.

As the smoke clears, WTIC oil is down -1.5% to 59.78. Brent oil is off -1.2% to 69.78. 

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Bingo, the blue line is tagged a couple hours ago and price bounces. Considering that choppy sideways basing activity will likely continue for a couple weeks or month, the 57-58 level may hold as a base, if not, price may seek the 52-53 support.

WTIC oil is in a bear market down in excess of -20% from its top at 77. Brent oil slips into a bear market by a hair today off -20% from its top at 87.

The markets were pricing in the Iranian sanctions but then the Whitehouse throws a curve ball providing waivers to eight countries. This action will result in a larger supply on the market and prices collapse. Lower oil prices mean lower gasoline prices which means holiday spending will be buoyed. Oil and energy stock holders will be sad but consumers will be happy. 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.

Note Added Sunday, 11/11/18: WTIC finishes the week down -4.666% to 60.19 with a low at 59.26. Brent oil drops -3.5% to 70.08.