WTI Crude Oil

March 26, 2017 01:00 PM

Two years ago when we were trying to gauge the massive sell-off in WTI crude oil, we highlighted a long-term trendline that would serve as major support. That trendline tied the 1998 low of $10.65, to the 2001 correction low, to the massive 2008/09 low just above $32 per barrel, to the January 2015 when it sat around $47.50. We knew we were onto something when crude rallied more than $3 in the last hour of trading on the last day of January 2015 to settle right above that trendline. The next several months the market fought over that level on a month-end basis and finally took it out in July 2015. Since, it has remained below the slowly rising trendline for 17 months before breaching it on the upside in December. Still, month-end is a battle. The trendline is sitting around $52.50 now and is still acting as a magnet for price especially around month end. Tabb.

About the Author

Editor-in-Chief of Modern Trader, Daniel Collins is a 25-year veteran of the futures industry having worked on the trading floors of both the Chicago Board of Trade and Chicago Mercantile Exchange.