Oil Tumbles almost 5%

Oil(WTI) ends the day with a major tumble of almost 5%,as the Dow suffers its worst day in 2012.So,here is a quick update in oil.Take into account the downward channel that is clearly formed,packing enough momentum to bring the price in the 82.1-85.7$ range as predicted.Notably RSI is still at a healthy 38.5,allowing for more downward movement to develop.The “twin” fibo levels of 78.6% in the second chart presented here,are likely to be tested soon and provide temporary support.We will have to wait for significant developments in the geopolitical arena if we are to see a major rise in oil prices anytime soon,since the recession plaguing Europe and the prolonged weakness in the American economy are catching up with the markets and their “on-QE-steroids” mentality.Now that the elections in US are over,the military option in the issues of Syria and Iran is coming back with a rage,and in our view,will constitute the main factor behind moves in the oil price.

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