Make Kitco Your Homepage

Will Oil Follow Historical Patterns?

Commentaries & Views

Our research team, at Technical Traders Ltd., has been very interested in Oil recently as the current rally appears to have rotated lower near a top.  Our predictive modeling systems, predictive cycle analysis and other tools suggest Oil/Energy may be setting up for a downward price trend.  This may be an excellent opportunity for skilled traders to identify profitable trades as this trend matures.

This Daily Crude Oil Chart shows our Predictive Cycle Modeling system and shows the projected price cycles out into the future.  One can see the downside projected price levels very clearly.  This cycle analysis tool does not predict price levels, it just predicts price trends.  We can’t look at this indicator and think that $72 ppb is a price target (near the right side).  We can only assume that a downward price cycle is about to hit and use historical price as a guide to where price may attempt to fall to.

Using our adaptive Fibonacci price modeling tool, we can see from the chart below that downside price targets are currently near $72 ppb, $67 ppb and $65 ppb.  Therefore, we believe the $72 price level will become the first level of support, where our price cycle tool suggests a small rotation may occur, and the $67 price level may become the ultimate downside target level.

We believe the current price rotation in Oil/Energy may be setting up for a decent downside price move with a lower price target at or below $67 ppb.  Historical data shows that this type of price action, downward, at this time is historically accurate and predictable. 

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

Precious Metal Charts

Follow Kitco News