• WTI Crude Oil just broke out of the 8 week range to the downside
• Possibly targeting for the $38.00 previous support low
Strong breakout to the downside
Price succeeded in breaking out of the range after 8 weeks of consolidation on the 12th of November 2015.
Sellers subsequently drove price lower and cleared the $40.00 psychological round number but the selling momentum was unsustainable. Price closed back above the $40.00 on 20th November 2015 which formed a hammer. We could see price retracing slightly first to test the $43.00 previous range low resistance before heading back down to test the all-important $38.00 support area.
With price being stuck in the range for 8 weeks, price had accumulated a huge amount of energy in them and with this break down, there is a high chance that the $38.00 support could be broken where price aims for the December 2008, $33.00 support next.
Price made new lows after the range broke out to the downside in the previous 2 occasions
There were 2 periods where price went into consolidation phase right after the oil crash from $107.00. (Read Report)
Source : Phillip Securities Research