Courtesy of Doug Short.
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Even though the media tells us of unrest in the mid-east, Crude Oil is breaking support of a bearish rising wedge. On June 20th, Crude oil hit a short-term high on news coming out of Iraq, and since then Crude Oil is down almost 10%.
The decline out of the bearish rising wedge now has Crude oil falling towards a support line that dates back to the lows in 2012. No doubt line (1) in the chart below has to be viewed as support.
Should support line (1) fail to hold, many would consider this a message of global softness. Traders have established one of the most crowded bullish positions in Crude oil in the past 15-years. If Crude oil should break support, tons of investors could be caught on the wrong side of this trade!
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