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Crude Oil May Have A Deep Downside Move
By Maurice N. Walker

* Sunday, May 12, 2013

Sunday evening: Crude Oil Futures (CL) currently sharply lower.
Oil slips on worries of slowing US growth momentum, strong dollar

WTI crude oil is fluctuating below the main descending trend line for the overall sideways market. It has been oscillating back and forth in a large contracting trinagle for over a year now. As shown on the daily chart below, the upper boundary of the triangle is where the key resistance area at 97.00-98.00 comes in, which rejected the recent rally and pushed prices lower. Unless I see a clear break above 98.00 I will continue to anticipate a deeper downside move for crude oil. A push above 98 would result in a breakout of the triangle. So the odds of reaction off the trendline area very high.

... Resistance is the perfect spot to get out of longs or go short.



http://thechartpatterntrader.com/

George.

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