WTI Technical Analysis: The Channel Holds as Oil Faces a New Supply-Side Shock
WTI Technical Analysis: The Channel Holds as Oil Faces a New Supply-Side Shock Since my last analysis, WTI has gone through another very volatile move. Price briefly dropped to $88.06 , almost exactly testing the lower part of my rising channel, before recovering and closing the day around $91.26 . For me, the most important thing is that the channel has once again done its job: the lower boundary was tested aggressively, but the market managed to recover above it. The lower channel was tested — and survived This is probably the most important development on the chart. On the daily chart, WTI traded as low as $88.06 today before recovering to close at $91.26 , down about 1.8%. That is a very large intraday range of more than $5. The interesting part is not simply the size of the move. It is where the market found buyers. My rising pink channel has been developing since the summer low around $67–68. Its lower boundary has gradually moved higher, and today's price action once agai...
