Oil liquidation continues for the 15th down day out of the past 19. Technically oversold and coming into prior support. Careful trying to catch, but worth watching. $CL_F $USO pic.twitter.com/QMg0PrFQ72
— Evan Medeiros (@EvanMedeiros) February 3, 2020
Today’s Chart of the Day was shared on Twitter by Evan Medeiros (@EvanMedeiros). It’s a daily candlestick chart of WTI Crude Oil futures over the past nine months. Crude Oil has been sinking like a rock in recent weeks. It’s dropped over 20% from the January 6th high, landing it in bear market territory. Evan points out that price is currently testing a level of potential support around $50 per barrel. In addition to being a key psychological level, this level acted as support numerous times in 2019. We often think of support/resistance levels like punching a wall, where each time you hit it, it gets weaker and weaker until you eventually break through it. Keep an eye on this chart this week to see if buyers are able to defend this level once again.