Near Term Trend: Positive
Friday’s Close: $47.64 (+ $28 cents)
UPDATE: Following the bounce from support at the $40.00 region (which we predicted), up to $49.70 region, the contracted hit a ceiling exactly at our internal resistance line (see chart).
We had alerted our readers of resistance for the past few weeks, and subsequently it turned out to be a formidable region. In our last report we stated, “Resistance at $49.90 should cap any further advance on Friday, and profit taking (selling) should be apparent at the start of this week”. Subsequently, the price of Crude sold off from our resistance point down to $46.40, but rallied slightly on Friday to end the week.
Regardless, market is at an important infection point at this juncture, but feels heavy.