$34.53 was the Monday low
The price of the most active crude oil contract, has traded to a low of 34.63 today - down 2.25% on the day. It is currently trading around $34.75. The low on Monday extended to $34.53. The high for the week squeezed up to $37.88 on Tuesday, but the inventory data yesterday sent the price tumbling again.
The technicals are certainly negative but where is the next target?
Looking at the daily chart, connecting the year lows creates two potential targets that shorts can step toward on further declines. They come in at $33.35 and $30.50 respectively (see chart above). Other than that, the low price from the week of December 19, 2008 came in at 32.40. The low from the January 23, 2009 week came in at $32.70.
