I have been watching crude doing it’s shenanigans for the better part of the past 3 months, where it has been gyrating between 71-83 threatening breakout and breakdown at diiferent times.
Over the past 3 days when stocks have been beaten down across the globe, crude has done very well to hold on to it’s trendline support of the P’nF charts.
Take a look..
It is at a great action point from where the odds of it reversing higher are much more.However a print of 71 can change all of that.
I consider crude to be an important market measure. Quite simply, stocks will not move lower if crude is stable or exploding higher.
On watch for the next week along with the this technical level on crude would be stocks in the energy patch like Reliance, ONGC, Cairn etc.
They are compelling buys with risk easier to manage.