CLICK ON CHART TO ENLARGE
Even though the media tells us of some unrest in the mid-east, Crude Oil is breaking support of a bearish rising wedge of late! On June 20th, Crude oil hit a short-term high on news coming out of Iraq and since then Crude Oil is down almost 10%.
The decline out of the bearish rising wedge now has Crude oil falling towards a support line that dates back to the lows in 2012. No doubt line (1) has to be viewed as support.
Should support line (1) fail to hold, many would consider this a message that leans towards some global softness. Traders have established one of the most crowded bullish positions in Crude oil in the past 15-years right now. If Crude oil should break support, tons of investors would be caught on the wrong side of this trade!