Monday, June 3, 2013

Oil to face resistance at 93 dollars

From the 28th of May (2013) oil has been trending nicely down by making lower highs and lower lows. As you may know this is the clearest indication of an ongoing downtrend. At the moment oil is trying to rally, but looking at the technical picture it is obvious that it is going to face resistance at 93.00 dollars per barrel. Where will it go after hitting the target? I have no doubt that it will revisit May's lows that are at 90.00 dollars per barrel. There might be some support, but looking at the bigger picture you can be sure that oil is headed to 87 dollars per barrel level. So, are you ready to go short?