With a crude oil now trading under $40 dollars a barrel, today’s chart presents the current, long-term trend of West Texas Intermediate crude.
As today’s chart illustrates, crude oil traded within the confines of a long-term upward sloping trend channel since the late 1990s. However, with the dramatic 59% plunge from mid-2014 to March 2015, crude oil broke below support (green line) of its 17-year long-term trend channel.
That decline was followed by a relatively short rally that brought oil back up to what was once long-term support.
Today, largely as a result of economic reports that indicate that the Chinese economy continues to slow and the fact that the US has become the defacto swing producer, crude oil is once again pulling away from resistance (red line) of its two-year downtrend channel and has just made new post-financial crisis lows.
Via: Chart of the Day