Five Charts That Explain Crude Oil's Sudden Nosedive Toward $45
- Rout overnight amid heavy trading in normally quiet period
- Traders hold record WTI contracts, speculation they’re bearish
Oil Extends Slump Below $45 a Barrel
Thursday’s collapse in oil prices brought with it big shifts to many of the indicators that analysts follow as they try to figure out where the market’s headed next. Here are five charts monitoring many of those key barometers. In them, a trend emerges: capitulation.
It started with a technical break. Then another. Then another. West Texas Intermediate crude broke through its 200-day moving average last week after a battle had raged between bulls and bears. Once that gave way, a key Fibonacci retracement and the low of the year were on the horizon, before paving the way to $45 a barrel. As each one collapsed, a new trap-door opened lower. “We have well and truly entered the capitulation stage,” said Saxo Bank head of commodity strategy Ole Hansen.