Crude Oil made an up-thrust last week and topped at $103.25, followed by a massive selloff that sent the quotation well below $100.00.
What actually happened in the $100.00 area was that a lot of stop losses were activated, therefore creating a bullish impact on short term. This usually happens when a rising trend is in its final stage and represents an exhaustion move.
The bullish channel, represented by T1 and T3 lines, created an organized rise and the $100.00 was clearly a resistance zone, as mentioned in the past analysis: http://markettechnicalview.blogspot.com/2011/11/crude-oil-wti-technical-analysis_14.html .
The support is now set in the $94.70 – $95.30 area, given y previous lows and the 61.8% Fibonacci retracement of the whole rising swing started in early November.
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