$WTIC Breaks Support, $TSX Teeters On The Trendline

Here is OIL, the ETF.

I had to use the 60 Minute chart to show the breakdown, but here it is.

You can see the target price objective on this 60 minute chart is $20.30 on this OIL ETF. That is down at the support levels of November which is $85  equivalent on the $WTIC chart. (Matching the dates). 

Bottom line, commodities let go today which is a continuation of the trend. What worries me most is the big picture triangle of Crude Oil. A breakout through the bottom of a 4 year wedge is significant.It has not happened yet.  The longer the time frame of the line, the more important the breakdown. 

Here is the Crude oil chart I am referring to. Remember this chart will update end of day. You can see this in the chart title where it shows (EOD) in brackets. As I write this, the actual price of oil is $91.00

Moving to the $TSX, the 12,500 level on the $TSX chart was resistance. If you look horizontally at that level, it has been significant. This week the $TSX has rejected the price action  at that level again. 

I'm staying focused on the Huge Head/shoulders chart for the $TSX. This could be the final high before we test the neckline at 11250.(not Shown). 

Here is the PnF Daily.  You can see the PnF target is 11550.

A break below 12200 starts the red line saying we are in a bear market. A move below 12250 would put an 'o' at the same level as the previous 'o'. If the $TSX moves below 12200, it will put another 'o' which would break below previous support and the uptrend line. Thats an important level.

Just to review, $COPPER is considered an economic indicator. It broke down below a 3 year trendline.

$Gold has now broke down below the 2 year trendline.

$WTIC breaks PnF support. Next area to test is $86, then $76.

There is a trend here so far.

 

Good Trading,

Greg Schnell, CMT