Crude Oil has been in Free fall the last couple of months. It became bearish when it finally broke below its 2 year Triangle back in September-October 2014.
10/06/14 Crude Oil Forecast: "The Monthly Crude Oil closed lower last week at 89.74, below long term Triangle Trendline support at 92, which is bearish. The Triangle has formed since the 5/2/11 Highs, just over 2 years now."
11/17/14 Crude Oil Forecast: "The Monthly Crude Oil again closed lower last week at 75.82, which remains bearish. Triangle target is 51.67."
Actual: Since we broke the 2 year Triangle back in September 2014, we saw a sharp multi-month decline finally reaching our 51.67 Triangle Target (from 11/17) on Monday Jan 5 2015.
What's next: Support is at 49.86, the 78.6% retrace, but Major support is at the long term 12/98L-11/01L-12/08L Up trendline at the 46-47 area. There is a 50 Month Cycle due June 2015, bias is this will be a Low and the Apex of the 2 year Triangle due in Feb 2016, which should be a major CIT.
In the Stockmarket, the 12/26-29 double Highs were confirmed in with 12/31 decline and projected lower on Fri-Mon 1/02-05, we will review the stock market outlook in the next Update.
