Last night in the Asian trading session WTI crude oil dropped approximately $1.30 in a few minutes on no news. Oil bounced off the mid $43 support range shown on yesterdays chart.
Was this forced liquidation?
What happens next? It is too early to determine if this is a bounce or the beginning of a new rally. I lean towards the second, assuming my Elliott Wave Chart was correct. But the first resistance will be found in the high $47’s.
Chart Courtesy of Stockcharts.com
If you like ideas like this please sign up to the free quarterly economics newsletter here.