Oil Bottoms Out

CL just reached our next downside target and should see a substantial bounce here.2015-08-19 CL 5 0837From our Aug 3 post The Dollar Days of Summer:

2015-08-03 CL daily 0935

posted Aug 3, 2015: Dollar Days of Summer

Unless it bounces back by the end of the day, CL appears headed for the 1.618 at 40.57.  Interestingly, the timetable seems consistent with our Aug 13 analog target.

Note that this is the 1.618 extension of the bounce from 49.69 in Mar to 64.45 in May.  It also lines up nicely with the white channel .236 line and the falling red channel’s midline. 2015-08-19 CL 60 0837While there is additional downside potential per the falling white channel, this is a solid Crab Pattern [EXPLAINED HERE.] The 1.618 Fibonacci level target usually provides a substantial reversal.

2015-08-19 CL daily 0837There are several potential upside targets, depending largely on what the Fed minutes have to say.  And, this being the age of head fakes, there is one to consider here.

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