Oil - Eyes on 41.38

Dec 25, 2018

I never expected a drop this far/this quickly and have felt the pain looking for a bottom too soon; but here we are. With prices closing on the weekly below Sep '16 - June '17 Support (43.x), I see potential for a continued grind down as prices are right back in the eye of the 2015/2016 storm. IF... prices close a weekly bar below 41.38, then I believe we may see clustering/ranging between 34.x-41.x finding midterm support in the overall bottoming process; however I also see potential for a spring down to test and possibly crack the 30 level where I would expect very strong buying at the Feb 2016 neckline between 29-30. In summary - I am looking for a bottoming process between 34.x-41.x with a possible quick spring down to 29.x - this could create a great buying opportunity heading into late 2019-2020

Overall - I believe this could accompany Equities (S&P) retesting the 1800-2100 levels and feel this deflating/inflating - if oil prices run back up to 60/70 heading into 2020 will be very healthy for the economy ------- heading into 2020 elections, wink wink....

Merry Christmas and Good trading all!