Brent Crude is broke medium-term support at $110/barrel and is headed for a test of the band of primary support between $100 and $103/barrel. Failure would indicate a long-term decline to $75/barrel*. Reversal of 63-day Twiggs Momentum below zero already warns of a primary down-trend.
* Target calculation: 100 – ( 125 – 100 ) = 75
Nymex WTI Light Crude followed through below $90/barrel, signaling a primary down-trend. Reversal of 63-day Twiggs Momentum below zero strengthens the signal. Expect a test of the 2011 low at $75/barrel (similar to Brent Crude).
* Target calculation: 92 – ( 110 – 92 ) = 76