This Oil Price Chart Is Very Important!

| March 16, 2015 | 0 Comments

oilOil Is Back On The Defensive!

After a period of relatively quiet trading in February, bears are once again taking control of West Texas Intermediate (WTI) crude.  The commodity lost just over $2 a barrel last Friday to close the session at $45.

What’s going on?

Despite big cutbacks in 2015 capital spending from most US producers, US oil production is still surging.  

In fact, for the week of March 6th, US commercial crude inventories rose by 4.5 million barrels.  The weekly increase sent total US crude stockpiles to 448.9 million barrels- yet another 80-year high according to the EIA.

Most analysts now agree that US production will keep climbing at least through mid-year before exploration cutbacks finally start taking a toll.

Such bearish information has investors trimming their bullish bets on oil, and bears are adding to their short positions.

With all this information in mind, let’s look at a very important oil price chart.

Oil Price Chart Reveals Something Very Important…

Now that crude is trading back near the 2015 low, we have an essential support zone to watch.

Here it is…

Oil price chart, a chart of WTI crude

As you can see, WTI is approaching the low set in late January.  This level is very important for two reasons:

  1. Bulls will use the $44-$45 area as a low-risk support level to get long. If the market holds this area, we could have a “double bottom” technical pattern, which will bring more buyers into the market.
  1. If this support zone doesn’t hold, investors may panic and quickly push oil to $40 a barrel or lower.

What happens at the $45 support area will likely decide the trend of the market for at least the next few weeks, and possibly much longer.

How Do You Capitalize On This Situation?

I recently provided readers with an essential go-to ETF list that gives the best choices for trading price fluctuations in energy commodities.

You can use the products on that list to trade crude as you see fit.

But listen to this…

I gave subscribers of the Commodity ETF Alert a heads up on this situation early last week.  They also received a timely oil ETF recommendation that’s already producing solid profits.

In case you’re unaware, the Commodity ETF Alert is an affordable investing service that has laser focus on the commodity markets.  We use commodity ETFs to capitalize on movements in various hard assets and the industries producing them.

Let me tell you, if crude breaks below $45 a barrel, our recent oil trade is going to rack up some fantastic gains!

If you’d like to catch commodity ETF trends before everyone else, click here. 

Until Next Time,

Justin Bennett

BIO:  Justin Bennett is the head commodity research analyst at  With over a decade of real world trading experience, he finds ways for you to consistently profit from movements in commodities and the companies producing them.  Sign up for our free reports and commodity newsletter at

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Category: Crude Oil, Energy

About the Author ()

Justin Bennett is the editor of Commodity ETF Alert, an investment advisory focused on profiting from the ebb and flow of important commodities via ETFs. The commodity veteran and options specialist is also a regular contributor to the Dynamic Wealth Report. Every week, Justin shares his thoughts with our readers on a variety of commodity-related topics. Justin is also a frequent contributor to Commodity Trading Research’s free daily e-letter. And he’s the editor of another highly successful and popular investment advisory, the Options Profit Pipeline.