As discussed in last week's webinar, Crude has broken a key support level pointing to additional downside targets. Here's the current September CL daily chart:

Click on image to enlarge!

At this point there are no upside targets in play. It would take a break of the labeled key resistance zone above 95 in order to put the emphasis on the 107 area target and additional major resistance overlap. That’s the area which would have to break in order to focus price on targets above the prior major high. Unless we see a break above that 95 area, the focus remains on downside. And with the 50 CCI just testing the underside of -100 and price below the 34 ema, the momentum indicators are saying that it’s more likely that we’ve just seen a bounce along the way to a deeper decline. A break below the support at 78.5 would help to confirm this and should lead to the target just above 72. On any bounce from new swing lows, we’ll project new resistance factors and prioritize them so we’ll be able to keep track of the next key major levels in the way of a sustainable rally. Remember we need breaks of the .786 retracement levels in order to activate targets. The combination of the current resistance levels holding and the momentum indicators continuing to favor short side is a major warning regarding continued long side!

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