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Crude Oil has traded inside of rising channel (A) for the past couple of decades and not even the financial crisis in 2009 could cause Crude Oil to break support of this rising channel.
The break below the multi-year pennant pattern a couple of months ago has caused a good deal of selling in the Crude complex, as it falls like a knife. Crude didn’t even pause as it was slicing through channel (A) support.
Almost 90 days ago, when Crude was trading above $90, the Power of the Pattern suggested that a break of support could send Crude down to $70 at least. (See post here)
For nearly 20 years, Crude traded inside of sideways channel (1), which was tested as support back in 2009. With Crude breaking down, the next long-term support comes into play could be channel (1), around the $35 level, which was hit in 2009.
What countries will be impacted by lower oil prices? Yes Russia and Saudi Arabia could be impacted, don’t forget that the United States could too!
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Large bullish wick this week, with Momentum oversold. I have no position in it. Should Russia do well from here, EEM could benefit too. EEM is at the bottom of a 2-year trading range, with a bullish wick this week at support.
From a risk management situation I like EEM over RSX at this time. If both would do well, I do suspect Russia could bounce better!
Thanks for the question and your viewership. Blessings to you and yours. Chris
What are your thoughts on the Russian market ? RSX and TRF in particular
Thx for sharing Niels, very nice work. Also Thank You for your viewership of my blog. Blessing to you and yours. Chris
Which is approximately the same as one of the Fibonacci levels
Hi, Dear Chris:
Thank you for your chart information.
I am just wondering that, beside the possibility of going into side-way channel “1” from Channel “A”, are there any possibility to go into side-way channel between $35 and $100, that means the $35 resistance become support?