It is a good idea to step back and look at a chart for West Texas Intermediate with a wide-angle lens. For 2015 and 2016, the 200-day moving averages defined the major downtrend and resistance on each of the near-term uptrends. The major trend, intermediate trend and near-term trend are all down. WTI will test major support at $35. Like I said before in a previous post, the spigots are wide open. A break below $35 will have a negative effect on world indexes. Banks have exposure to large loans given to the shale plays in the boom years.
Reference the last chart analysis for WTI as crude approaches major support at $35 and the 50-day simple moving average.
“Technical Analysis is about probabilities.”
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