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.

WTI Line Chart 2004-2016

Reference the last chart analysis for WTI as crude approaches major support at $35 and the 50-day simple moving average.

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