He says that this is expected to endure for the first 6 months of the year.
Both Brent and WTI have been on a little trip from the lows and both are currently holding up at their respective 55 dma’s
Brent crude Daily 06 02 2015
WTI crude oil Daily 06 02 2015
Now we’ve seemed to have halted the big fall we could start to see the tech level assert themselves on prices. As you can see from the fibs there’s still plenty of room for a bounce.
To cement a potential bottom I’d like to see another test lower that holds. In Brent I’d be looking for it to go no lower that around $48-47.50 and $47.50-47 in WTI. Given the speed of the falls we’ve seen I would also expect to see plenty of selling on decent rallies from producers who perhaps have more patience than others in waiting to hedge at better prices.
