By Jason Sen
WTI Crude Collapsed exactly as I predicted. As you know I waited patiently for this move since the high which I correctly predicted on 4th July when I wrote: A good chance we have topped but obviously we must hold below 7530 for bears to start to take control.
This is just the start, there are too many speculative longs in the market & they will panic. I am tempted to say this is the start of a bear market for oil. Holding below 7080/90 retests minor support at 7000. A break lower eventually targets probably the best support for today at 6945/35. If you want to buy the dip, stop below 6885. Next target & Fibonacci support at 6825/15.
Gains are likely to be limited with quite strong resistance at 7120/30. Shorts need stops above 7180. Look for resistance then at 7250/60.
Courtesy: Day Trade Ideas