US crude oil prices are threatening to fall below $105 for the first time this month as the Fed debates a taper.
Short oil has been my trade on the deescalation in Syria for some time and it’s beginning to pay off. Oil is also lower today after Libya restored about 25% of its output following talks between the government and striking workers.
A bout of dollar strength (ahem, taper) would lead to another round of declines.
Technically, the decline today breaks the uptrend established in early August and the 55-day day moving average. A close below would be bearish, initially targeting $104.21 followed by $103.50.
The recent top also forms a rough head and shoulders pattern targeting somewhere around $97.
