Has Oil hit a bottom and ready to rebound?June 22, 2012
Over the past six weeks WTI Light Crude Oil has sunk more than 25%. This drastic move has been fueled by constant doom and gloom coming from Europe and its impact on global economic growth.
This week’s poor data out of China further weakened the price. Now many analysts are predicting more movement to the downside. Never mind what OPEC officials have recently stated regarding where they would like to see Crude, television experts seem to be drastically retreating from the Energy risk trade.
Jeff Clark of Dailey Wealth focuses on a different view from a technical prospective:
“As you can tell from the chart below, oil is approaching the support line at last October’s low. That should at least cause the decline to pause. Also, the price of oil is now 18% below its 200-day moving average line. Oil rarely moves further away than that, before reversing and trending back toward the line.
Oil may not have bottomed for the year. But it has fallen so far and so fast that traders should be prepared for a short-term bounce.”
Read more from Jeff Clark at Daily Wealth: Is Oil Ready to Bounce?
Where do you see WTI heading? Will the $75 per barrel price support hold or will we see prices that haven’t been seen since the crash of 2008?
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Past performance is not necessarily indicative of future results. The risk of loss exists in futures trading.
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