Technical analysts at Citi issued a "schedule of the week", from which they concluded that Crude Oil has reached the desired level of incidence and that "this is enough for today."
At least Citi expects a pause in the fall, but perhaps cyclical bottom fall.
Citi compares the current drop from the fall of 1998, 2001 and 2008.
Slow Stochastic has reached the same value as that at the time of the mighty falls.
Confirmation of their point of view Citi also considers touch a rising trend line from 2008.
If you look at the long-term chart, we can see that from 1985 to 2003, WTI crude oil traded in the range of 10-30 dollars, and the average value was at about $ 20 per barrel.
After the 2004 oil rose to a new trading range. This range can be roughly outline as 40-120 dollars.
In my opinion, a further decline in area 40 is interconnected with the further strengthening of the general trend of the US dollar. Value of oil $ 40-45 IMHO should match the value of the dollar index 100-110. The dollar is still far from these values, but it is possible ... to the author Nikolai LUDANOV
