March Crude Oil Analysis
This week starts with March Crude Oil futures in basically the same position as last week. The main trend is down according to the weekly swing chart and the market is rapidly approaching the psychological support level at $25.00.
It is also in a position to test a pair of downtrending Gann angles. Trader reaction to these angles will set the tone of the market. On the upside, the first angle, moving down $0.50 per week from the $41.25 bottom drops in at $30.25. Overcoming this angle will put the market in a strong position and could fuel the start of a short-covering rally.
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A sustained move over $30.25 could create the momentum the market needs to test another downtrending angle at $35.75.
On the downside, the key angle to watch is the steep downtrending angle from the $50.70 top. This angle also moving down $0.50 per week and comes in at $26.70. Holding on the bullish side of this angle will indicate that buyers are starting to come in to support the market. However, crossing to the weak side of the angle will put the market in an extremely bearish position.
If crude oil continues down the path of the downtrending angle then we will get our test of the $25.00 level the week-ending February 5. The angle drops down to $24.70 that week. It’s too early to tell if the market will be coming up to test the angle or coming down.
As far as the week-ending January 22nd is concerned,…