The ugliness in Oil continues. Last week it looked like support around $65 might hold but this week we can see that price has dropped well below this support. Next targets are $54 at the blue median line extension and $50 at the red extension. MACD and Stochastics are giving no indication that the price plunge is nearing an end.
Governments and central banks can run the fiat currency printing presses and manipulate statistical economic data but they can’t force human beings to consume energy. As the demand for energy decreases the price of that commodity decreases – this is classic demand-supply economics and perhaps it is less subject to manipulation than other economic markers.