Oil price slipping - Goldman Sachs technical analysis says serious downside risk

Technical Analysis

Author: Eamonn Sheridan | oil

A chart from GS on WTI as the oil price is setting off into the new trading week with a bit of a slide here in Asia

Comments accompanying the chart (in brief):
  • Oil has breached 51.67 interim high from June 2016
  • Contact with 51.67 diminishes any possibility that this might be a 4th of 5-waves from early-'16
  • in effect exposes serious downside risks
  • It's now possible to argue that the entire rise from the '16 lows was counter-trend
  • ... In terms of levels to be aware of, WTI is currently testing 50% retrace at 51.47. The next retrace to note is 61.8% all the way down at 45.47. 
  • Worth pointing out that monthly oscillators are coincidently breaking below the base of a three year bull range, supporting the view that further weakness is likely on the cards.
  • initial congestion 51.47-50.00
  • next notable support 45.47
  • reassess above 56.55
I can't say I am a user of Elliot Wave, but if anyone is comments welcome!

By continuing to browse our site you agree to our use of cookies, revised Privacy Notice and Terms of Service. More information about cookiesClose