Here is a highly condensed hourly chart showing pit and electronic trading in June crude oil futures. I last commented on this chart here.
I think we are still in the early stages of a drop that will carry the market to 60.00 and probably much lower than that. In any event June crude has accelerated well below the support level near 69.50 which is the 7 1/8 multiple of the 1986 low at 9.75. So I conclude that we should soon see the 64.60 level, the 6 5/8 mutiple, and from there a rally of $2 to $4 would be a reasonable expectation.
No comments:
Post a Comment