/biz/ - Business & Finance

>>827588
Holy shit this chart is awful. I really hope nobody actually thinks oil will get down to ~20.

Here's a proper chart. There is going to be support at $45. It will probably bounce off there unless Saudi Arabia gets invaded by the Reapers. Whether or not it goes below 45 is a matter of chance. My money's on it not going below since it didn't break that level a few months ago when it had significant momentum.

If it does drop below 45, the next level of major support is $34. I am almost certain it wouldn't go below that unless Ragnarok is upon us. 34 was the low point in 2009, and that was with over a decade of overbought conditions, a global economic meltdown, and HUGE momentum all happened at the same time.

If it ends the day just above $45 I'll put some cash into UWTI for the possible uptick. If it shatters that support I'll switch the money to USO. Oil can remain relatively low for a while, but it can't stay THAT low for longer than a few months at most. In the era of fracking, cost of production is too high.