Oil Stocks Breaking Down As Crude Price Falls Below $75
In the past two trading days we’ve seen some significant action take place in the price of crude and in oil stocks as a whole. On Friday, the dollar spiked higher and continues to show signs of at least a short term bottom at these levels. As the dollar climbed, oil stocks continued to show signs of deterioration on Friday as many break through key support of their 50 day moving averages. Just a take a look at the live oil charts page and you’ll see all the major oil ETF’s now trading below their 50 day moving averages. However, it wasn’t until today that the price of crude dropped below the key $75 level. With the dollar rocketing higher Friday, it was surprising to see crude hang in there above $75, but it didn’t last long. The longer crude prices stay below $75, I think the greater the chance we test the $65 level. Take a look at key support and resistance levels of the price of crude here.