OIL Testing Major Support Level, Amid Global Stock Correction

Oil 0.26% price fell sharply last week as US inventories rise and new developments regarding Iran. It wasn’t until October 9, when price fell even further as a result of global stock market correction. Where oil 0.26% fell as much as 6%. Now price is testing final support level of the bullish channel , which spans back to August. On a final note, the stock market (US, China, Australia) must be followed closely for potential catalysts and correlation.

Trade Step-ups:

Scenario One ( Bullish Reversal): Price rejects a bearish breakout below 70.00. Look for a potential reversal to 73.00 and 76.00 respectively.

Scenario Two ( Bearish Breakout): Price breaks the bullish channel , look for consolidation below 69.00. Price could fall further potentially all the way to 67.00.

 

 

 

 

 

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