Figure 1 is a weekly chart of the i-Path Goldman Sachs Crude ETN (symbol:
OIL).
Figure 1. OIL/ weekly
Simply put OIL has broken down. Last week saw a close below the key
pivot or support level at 21.09. This is a significant and long standing
base formation, and such low volatility breakdowns typically lead to significant
price moves.
I will leave it to you the reader to put the pieces together as it pertains
to the global economy.
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