Market Update 3/10:Oil & BDI

The stock markets might be running on a parallel reality for quite some time,ignoring the coming recession in Europe,the slowdown in China and the looming fiscal cliff in the USA,but oil has been keen to respond to signs of the worsening economic conditions.Today,that was made evident as oil(WTI) suffered a major drop,ending at 88.1$,while breaking consecutive support levels.At this point,if we don’t see a significant reaction that will bring it back above the crucial 91.2-92$ level,then the price range is expected to be defined by the 83$-88.4$ channel.Oil(WTI) may also be in the process of forming a wedge pattern, spanning over a year,as indicated by the chart.If so,the lower part of the wedge will be reached within the next 3-4 months in our opinion.


Another of our long-term favourite indexes,the Baltic Dry Index(BDI) is very characteristic of the ill wind blowing for the global economy ever since the collapse of the global banking system five years ago.

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