Oil price fell sharply last week as US inventories rise and new developments regarding Iran. It wasn't until October 9, when price fell even further as a result of global stock market correction. Where oil fell as much as 6%. Now price is testing final support level of the bullish channel, which spans back to August. On a final note, the stock market (US, China, Australia) must be followed closely for potential catalysts and correlation.
Trade Step-ups:
Scenario One (Bullish Reversal): Price rejects a bearish breakout below 70.00. Look for a potential reversal to 73.00 and 76.00 respectively.
Scenario Two (Bearish Breakout): Price breaks the bullish channel, look for consolidation below 69.00. Price could fall further potentially all the way to 67.00.
Trade Step-ups:
Scenario One (Bullish Reversal): Price rejects a bearish breakout below 70.00. Look for a potential reversal to 73.00 and 76.00 respectively.
Scenario Two (Bearish Breakout): Price breaks the bullish channel, look for consolidation below 69.00. Price could fall further potentially all the way to 67.00.
