Update on CL: Dec 12, 2014

Crude light paused at our .618 target of 62.65, but has since continued sliding. Recall that this was supposed to be major support as the chart from a few days ago shows.

2014-12-09 CL wkly 0530The fact that neither the channel nor the .618 Fib held is quite bearish.  The next Fib support isn’t until the .786 at 49.17, followed by the .886 at 41.14.

If we don’t adjust prices to reflect contract changes, the levels are 50.67 and 42.41 respectively.  Either way, we’d want to continue to be short.

2014-12-12-CL daily 1300I see no other channel, moving average or chart pattern support  In fact, the daily RSI just fell through its support.

2014-12-12-CL daily RSI 1300We can argue that CL is oversold, but I see very little to prevent it from becoming more so anytime soon.

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