• 4 minutes Mueller Report Brings Into Focus Obama's Attempted Coup Against Trump
  • 7 minutes Countries with the most oil and where they're selling it
  • 10 minutes Stack gas analyzers
  • 13 minutes What Would Happen If the World Ran Out of Crude Oil?
  • 13 hours Trudeau Faces a New Foe as Conservatives Retake Power in Alberta
  • 2 hours Ecoside
  • 9 hours Oil at $40
  • 53 mins Japan’s Deflation Mindset Could Be Contagious
  • 16 hours Not Just Nuke: Cheap Solar Panels Power Consumer Appliance Boom In North Korea
  • 4 hours US Military Spend at least $81 Billion Protecting OPEC Persian Gulf Oil Shipping Lanes (16% DoD Budget)
  • 15 hours Haaretz article series _ Saudi Arabia: A Kingdom in Turmoil | Part 1 - Oil Empire
  • 6 hours Mueller Report Brings Into Focus Trump's Attempts to Interfere in the Special Counsel Investigation
  • 11 hours Gas Flaring
  • 11 hours Negative Gas Prices in the Permian
  • 1 day Is Canada hosed?
  • 20 hours The Number Increases: Swiss To Support Belt And Road Push During President's China Trip
  • 2 days Guaido and the Conoco Award
Jim Hyerczyk

Jim Hyerczyk

Fundamental and technical analyst with 30 years experience.

More Info

Oil Market Forecast & Review 10th January 2014

After the sell-off in crude oil the week-ending January 3, one would have thought that technically oversold trading conditions would have triggered the start of a short-covering rally. In addition, chart watchers would have been looking for some sort of technical bounce off the pair of Fibonacci price levels at $94.14 and $93.46. Finally, some would have even been looking for the selling pressure to subside near the recent bottom at $92.10.

This wasn’t the case, however, during the week-ending January 9 as short-sellers and weak longs continued to exit this market en masse, The inability to even mount enough counter-trend buying power or attract fresh bottom-picking typically means that the market hasn’t even reached a value zone yet.

Taking out the recent bottom at $92.10 with conviction should create enough downside pressure to challenge the June 2013 bottom at $90.05. If downside momentum continues then the April 2013 bottom at $85.57 will be the next target.

Because of oversold conditions on the daily chart, the market is ripe for periodic short-covering rallies. The main trend is clearly down on the weekly chart and this was reaffirmed when the swing bottom at $92.10 was taken out. The new main top is at $100.75.

The main trend will remain down until this top is violated. Until this occurs, traders are likely to sell rallies. Due to the size of the current break from $100.75, one would expect to see retracements of $4.00…




Oilprice - The No. 1 Source for Oil & Energy News