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When Crude Oil was trading “above” $90, the Power of the Pattern suggested that the most important commodity on the plant could trade at least down to $70, due to this important pattern. (see post here)
Joe Friday shared a few weeks ago, that if Crude were to break below this long-term support line, it could then fall to the $35 zone (see post here)
The above 2-pack takes a look at Crude Oil and Copper. As you can see, both of them are testing support line (1). Each of these lines lows took place over a decade ago.
So far the decline in Crude Oil and Copper has been totally dismissed by global equities. Will stocks continue to stay strong if these long-term support lines are broken by 5% to 10% below current prices?
At this time, support is support until broken!
In my humble opinion, I feel stocks could end up in trouble if selling pressure picks up on a solid break below support lines (1).
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