Light Crude Oil: 23 December 2014, Tuesday, 2.20pm Singapore Time
Attached above is the follow up on Light Crude Oil (WTIC):
$74 will continue to hold as resistance and will continue to act as the pivot suppressing light crude oil for the long term.
Important note 1:
It will also be for a very long term when we will ever see crude oil in the region of $100 again.
It will also be for a very long term when we will ever see crude oil in the region of $100 again.
This is what will happen now:
1. If crude oil backtests the dark brown resistance successfully at the $63.72-$70.00 band of resistance zone, $50.00 psychological support will break down.
2. If crude oil does not backtest the dark brown resistance at the $63.72-$70.00 band of resistance zone, it will just directly hit the $50.00 calculated bottom for a major dead cat bounce at 200days MA.
3. Whatever the actions, one thing can be certain: Light Crude Oil is far from having bottomed.
He who catches the falling knife on oil and oil-related stocks will end up with cuts and bruises.
Important note 2:
Note that this oil plunge from above $105 to current price of $55 is consistent and in sync with the Donovan-Norfolk alarm bell, of a bear market transition and worldwide capital exodus from numerous financial asset classes, which was sounded in end-2013 and early-2014 just before the severe plunge (refer to all past analyses on capital exodus).
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