Oil at Technical Crossroads Again, Retesting Monday's Important Corrective Low

The moment of truth for the next directional move in Crude Oil is approaching quickly.

Let's notice that the price structure has reversed yesterday's upside reversal and is pressing towards a full-fledged retest of Monday's two-month low at $44.42, which we notice is just above the up-sloping 200-Day EMA, now at $44.25.

A sustained breach (and close) beneath the 200-Day EMA will indicate that the June-July correction from $51.67 to $44.42 (114%), in fact, is not complete to the downside, and will leave Oil vulnerable to a press into the $42.00-$40.00 support zone.

An intraday recovery above $45.40 is needed to trigger initial signals that today's plunge represents a deep-retest, secondary, corrective low ahead of the emergence of a new upleg that projects to $53.00, and then to $58.00.

  • Action-Oriented Trade Set-Ups in Stocks & ETFs
  • Macro Analysis of the Broader Markets
  • Detailed Technical Guidance for each Trading Idea
  • Live Interaction w/ Mike & Our Member Community
  • And Much, Much More!
Join Now! - Special Offer!
Veteran Wall Street analyst and financial author, Mike provides detailed and timely analysis and trade set-ups on a range of markets. Read more...

Have Mike's “Out Front” morning analysis delivered FREE to your email inbox twice weekly!