Crude Oil Forecast Dims as it Breaks 10-Year Trendline

[CFDTrading]

Monday, 01 December 2008 20:10:51 GMT
Written by David Rodriguez, Quantitative Analyst
Full Article

he NYMEX Crude Oil contract may continue its decline if it is unable to recover recent losses, as the break of a 10-year uptrend channel leaves it vulnerable to further drops. Next downside targets include recent spike-lows at the 48.25 mark, while further price floors are shaky. If we trust continuous contract data, crude oil could test previous support at the 46.20 mark, while further declines would likely eye a move towards the psychologically significant 40.00 level. Short-term forecasts remain dim for the crude oil contract, as it remains in a clearly pronounced multi-month downtrend.

Short-Term Technical Forecast for Crude Oil

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[SSINGH]

crude is turning up....will it keep going?

 

[£10kLoser]

Well, it dipped below $47 today.

 

[Amerf1]

According to friends chart, near term target is $30 per barrell.

 

[SSINGH]

ouch!...does anyone think that the expected rise in inventorys to be anounced today has already been built into market price....or will there be a decline today....???

 

[andyboyd]

Hey all. Im absolutely new to this so apologies if Im talking nonsense! Thinking of buying into oil at some point soon though was caught off guard when it rocketed today. Anyone think it has broken resistance? or is this a bit overhyped with OPEC saying some crazy things about shocking the market. Looking at the futures they look pretty stagnant for now. Are the prices really representative of supply and demand? or are commodity traders panicking somewhat!

 

[£10kLoser]

I think talk of resistance and 10 year trend lines are meaningless in today's conditions - which are unique and the price is being tossed around like a boat in a storm. Not only is oil moving with the DOW, its moving according to perceived consumer and industrial consumption. It goes where the next bit of unexpected news takes it and predictions go out the window each time.

 

[Gaggs]

hey I'm nobody but the following is my guess for oil's future. (No pun intended)
I believe oil will see $100 before it will see $22.50.
After that I believe oil will trade under $40.00 before it hits $145.00 again.
Like i said just a guess but I want to be on the record so when this 100:1 pays off I will look cool for a day.