Oil Slips to New Lows: How Far Will It Go?

By Tomasz Wisniewski|

Published: November 07 2023, 11:02 GMT+0

Oil Slips to New Lows: How Far Will It Go?

As we wade through the dynamics of November’s market currents, oil has emerged not just as a commodity, but a storyteller, revealing a narrative of deep market shifts. Its latest chapter unfolds a scene set at the lowest levels since the close of summer, with technical and fundamental forces joining hands to pen a bearish script.

The technical terrain is marked by a classic head and shoulders pattern, etched onto the charts in a stark lavender. This textbook harbinger of bearish tidings has played out its role, with the neckline breach confirming the pattern’s potential for reversal from prior gains. As the price dipped beneath this critical juncture, it signified a clear departure from the bulls’ last stand.

In an attempt to claw back to former glory, the price of oil sought to overcome the towering wall of resistance at $88. This green line, once a floor, now a ceiling, rebuffed price’s advances with a cold shoulder, echoing the sentiment that what goes up must come down. The subsequent test of the neckline, now a line in the sand drawn by bears, saw it too hold firm, casting a longer shadow on the path ahead.

As traders, investors, and onlookers peer into the crystal ball for what’s next, the story seems to suggest a descent toward the yellow line of $71—a level not seen since the narratives of prior months. The journey down is not just a path but a signal, echoing through trading floors and across continents that the bear has indeed woken from its slumber.

Source: https://www.axiory.com/analytics/technical-analysis/oil-slips-to-new-lows-how-far-will-it-go