Lower oil prices? Not likely!
Some commentators are convinced that the crash in the commodity market last week was the start of a longer-term decline in the price of oil and other commodities. What is the price movement (the "track") telling us?
(Click on image for larger view)
The "track" left by this animal tells us unmistakeably that it is heading north! The price came back to find rising support, Fibonacci support and the moving average between 105 and 110. While there are always many fundamental reasons why the price should decline or rise, the price movement does not lie. As long as support holds, the trend is positive.
The temporary correction in the US Dollar drove all commodities lower. The longer term trend for the Dollar is still weaker.
