• 3 minutes Cyberattack Forces Shutdown Of Largest Gasoline Pipeline In United States - Zero Hedge
  • 6 minutes Renewable Energy Capacity Jumped 45% Worldwide In 2020; IEA Sees 'New Normal'
  • 11 minutes Forecasts for Natural Gas
  • 1 hour U.S. Presidential Elections Status - Electoral Votes
  • 5 hours Electric vehicle market growth is a blessing for some metals — and not a big worry for oil
  • 6 hours Is the Republican Party going to perpetuate lies about the 2020 election and attempt to whitewash what happened on January 6th?
  • 20 hours .
  • 20 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 3 hours Joe Biden's Presidency
  • 2 days Сryptocurrency predictions
  • 2 days CRAPPIFORNIA DOES IT AGAIN! California proposes to steer new homes from gas appliances
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