- Crude breaks with bearish structure
- Big support level around $60
After our call last week of oil topping at around $64/B inside of a bearish structure bears took control and price fell 356 ticks (-5.58%) within a couple of days.
After breaking with an immediate bearish continuation pattern (bold white) and a longer-term bearish structure (dotted white), we are now at a high-value zone where buyers are going to be found and short term sellers are going to be taking profit.
This area around the $61/Bis a previous zone of high volume and bears are going to have a difficult time breaking below.
Should price break below this zone I see as the next bearish target the 161.8% retracement of the flag (bold white) which confluences with the next value zone at around $57.90/B. This would mean a 585 tick dip (-9.17%) from the top of the flag. In any case we will be selling rallies below $60/B.