Oil fails to break recent resistance as markets tumble
Not only did Oil fail to break resistance at 45.275 as it stopped short at 44.90, but now it has broken through support at 42.525 tio trade as low as 42.175 before rebounding but remaining below the previous support at 44.525. The US Market futures are down this morning and setting up for a bearish open as the Asian Markets dropped 2.0% and the early European session has their indexes down by 3.0% to 4.0%. This market bearishness could continue to drag on oil prices (and other commodities) this morning. Should we see some recovery in the US Session later today, we could get a continuation of recent buying pressure to provide a nice pullback and set-up, but I'm not banking on a recovery with the tumble we have seen overnight, so make sure prices bottom out before looking for a long side opportunity.
