the oil complex is in the midst of a deflationary thump BUT do believe it’s coming into a zone of support.
posted for Andy @seeitmarket http://www.seeitmarket.com/correlation-watch-crude-oil-services-loonie-13951/ and so far the $OSX and Loonie have held.
why 50-51 for a bounce in crude:
- 3 ratio’s – .786 retrace, 1.618 and 1.27 extensions
- NOTE the TIME of the oil crash from the all time high is equal to the time from the June high in Crude.
- NOTE back in 2007 oil BOUNCE after it had traveled a distance shown by the blue arrow. it rallied 20 dollars/barrel and that same move down in price is right at your ratio’s. Additionally, that “balance point” in price represented the next move into the lows.
so … watch the 50-51 as we approach this crucial level. (note: 48 and then 42 are other targets)