Crude Oil is tanking of late as it breaks 3-year rising support! Where does long-term support come into play?
This chart looks at Crude Oil over the past 35-years. Crude has spent the majority of the past three decades inside of rising channel (1). It hit the top of this channel back in 2008, where it has created a series of lower highs ever since.
The rally off the 2016 lows saw it hit its 38% retracement level at (2), where it looks to have created a monthly double top at this key resistance level.
Joe Friday Just The Facts Ma’am- Crude is breaking down after the double top, which suggests over time it could test rising channel support at the $39 level at (3).