A 10%-Plus Drop Is Imminent for This Commodity

There is a clear downward trend in the seasonal pattern for this commodity that is set to last until the end of the year.

The price of oil has been volatile, and it has been tough to predict turning points. But I continue to rely on key trend lines that develop on the commodity as spots it is likely to hold at.

Currently, oil prices are testing a short-term resistance level. Take a look at this chart:

There is a clear downward trend in the seasonal pattern for this commodity that is set to last until the end of the year.

The chart shows a clear downward trend, testing that resistance level basically five times. (Even though one of those didn’t quite touch it, it was still a failed rally.)

Currently, prices are holding just below that resistance level.

The reason I am tracking oil at the moment is because we recently entered the inverse oil prime season, which is a seasonal period where oil prices have seen pressure over the past decade.

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Here’s a chart depicting that seasonal trend:

There is a clear downward trend in the seasonal pattern for this commodity that is set to last until the end of the year.

We are almost halfway through the month of August, and as you can tell, there is a clear downward trend in the seasonal pattern that is set to last until the end of the year.

That paves the way for a more than 10% decline in oil prices from now till the end of the year.

Regards,

Chad Shoop, CMT
Editor, Automatic Profits Alert