Friday, November 1, 2013

Oil Breaks Support and Continues Move Lower

Oil has broken the support level at the 97/98 level and is continuing to move lower.  Prices have moved through the 200 day EMA and are currently resting at the 38.2% Fib level from the mid-April - late August rally.  More importantly, the chart is in a very bearish orientation right now: prices are clearly moving lower, momentum is dropping and volume is flowing out of the market.

This is a very important development for the economy, as the decrease will give consumers more in-pocket income to spend.