Analysts at Goldman Sachs are out with their technical outlook on the US oil (WTI), as we head into a new trading week, pointing to serious downside risks.
Key Quotes:
“Oil has breached 51.67 interim high from June 2016.
Contact with 51.67 diminishes any possibility that this might be a 4th of 5-waves from early-’16.
In effect exposes serious downside risks.
It’s now possible to argue that the entire rise from the ’16 lows was counter-trend.
… In terms of levels to be aware of, WTI is currently testing 50% retrace at 51.47. The next retrace to note is 61.8% all the way down at 45.47.
Worth pointing out that monthly oscillators are coincidently breaking below the base of a three-year bull range, supporting the view that further weakness is likely on the cards.
View:
Initial congestion 51.47-50.00.
Next notable support 45.47.
Reassess above 56.55.”
Share
