Oil yet to find a floor

It was just another daily decline for WTIC Oil, settling -$2.14 (-4.4%) @ $46.07 (intra low 45.85). There is clearly no sign of a turn or floor. Next support is the psy' level of $40, after that... the $35/30 zone, where the collapse wave low of Feb' 2009 @ $33.55 is lurking.


WTIC, weekly

WTIC, monthly'2

Summary

*the 7'th consecutive red candle on the monthly 'rainbow' chart.. which exceeds the 6 of late 2008/early 2009
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Clearly, there is no sign of a floor in energy prices, and it won't take much for the Oil market to lose another 15% within the next month or two.

Best guess... a key floor is put in by mid summer... at which point the energy stocks will be rather attractive on a 2-3 year perspective.


Looking ahead

There is nothing due of significance for Tuesday.

*however, Fed official Plosser will be speaking on the economic outlook at 8am... Mr Market will be listening, and might use any comments as an excuse to gap higher.
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Goodnight from London