On Monday I shared that Crude Oil was pushing support to an extreme (see post here)
What happens when support breaks? Often a sizable decline!
Monday Crude was trading at $99, today it is trading below $93. Down a quick 6% this week….the equal of the Dow falling 700 points!
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Now a bigger test is taking place as Crude Oil is testing the top of a channel that has been in place for almost 30 years!
A solid break of this line would increases the odds of Crude Oil heading down to the mid-range of the channel, around the $60 level.
A break of this line and I suspect DNO or products like it will do rather well!