Crude Oil (Spot Price) Trying to Re-gain Support or Test Resistance on Weekly Chart? - UPDATE 1/15/16

UPDATED CHART (1/15/2016):

click chart to enlarge

Clearly the answer to the title of this post is that WTIC was testing resistance.  After a quick plunge, now WTIC is at or just above potential support on the above chart.  However, there is no guarantee that this support line will hold. Falling channel support (lower blue line) is at about $25/barrel.



UPDATED CHART (1/8/16):

click chart to enlarge

It appears that WTIC tested resistance (red line).  Is WTIC now headed down towards $30/barrel (green line) on this weekly chart within the descending channel? Stay tuned.

See disclaimers below and elsewhere on this website.



UPDATED CHART (1/5/16):

click chart to enlarge

WTIC appears to have successfully tested former support as resistance. Watch to see if WTIC continues moving down within falling channel to next support line on this chart.



ORIGINAL CHART:

click chart to enlarge

As the weekly chart above shows, WTIC (spot price) previously broke, but has managed to rise back to the underside of a long-term support line (solid green).  

Will WTIC re-gain this support line or will it successfully test this line as resistance leading to lower prices?

In any case, the WTIC spot price still remains within a steep falling channel that it needs to break out of before a trend change can occur.

If lower prices are in the future for WTIC, it appears that the next support line (dashed green) is at about $30. 

It would be interesting to see the effect on high yield bond prices of WTIC drops to $30.  See previous post on HYG and the apparent megaphone pattern.


Please remember that this is not investment advice. You alone are responsible for your investment decisions. See disclaimers below and elsewhere on this website.

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The content in this article, including the identification and discussion of any specific security (e.g., bond fund), is NOT meant to be and should NOT be construed and/or used as investment advice. This article is for general information and educational purposes only. Please read the Disclaimers  for junkbondrecycling.com in their entirety. The U.S. Securities and Exchange Commission website has guidance on selecting an investment adviser.

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The author/publisher has no position (long or short) in oil at the time this article was written. This position may change depending on future price action.

Base Chart Provided Courtesy of StockCharts.com.  Analysis and Annotation by JunkBond Recycling.com (all rights reserved)