Major, intermediate and near-term trends are all down
West Texas Intermediate 6-Month Chart
I have posted many charts on WTI. You can reference the long-term charts. WTI is now approaching levels last seen in 2002 to 2004. All one can do now is monitor the near-term trend for the development of a firm support zone.
From a world perspective, the net benefit of cheap oil in more than offset by the negative effect of the uncertainty created. Central bank policy of 0% money helped fuel an unprecedented exploration boom in the shale fields. Banks loaned money to everyone with a drill bit. Banks are now carrying impaired loans on their balance sheets. The story is not finished.
Reference my last post for WTI: Will $30 hold?
“Technical Analysis is about probabilities.”
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