WTIC 4 year low 11-27-2014

 

WTIC lost 4% overnight and hit its 4year low. It also exceeded and broke below the important 74-76 area of support.

We may see some support around 70-71 which is the downtrend support since 2011 high. Followed by a good bounce as the drop from 107 to 72 is not very healthy without a bounce. (-33%)

We can roughly say that Oil could be in Bear market and downtrend lines since 2011 is still intact.

72USD x 44.95 /  119.24 Liters =  27.14 pesos per liter

Assuming + 20% gross profit margin and expenses = 32.50 pesos per liter

We may see Diesel prices here in the Philippines to hit as low as 32.50 soon. (now at 35.10). 

*Xmas rush + cheap oil prices = disastrous traffic here in Manila x.x

Market snapshots: FTSE, DAX, PSEi, JKSE, HSI and China 11-11-2014

         I know we are all upset with the US and Europe ending with a V-shape recovery vs our expected Major B lower high to end another selloff to Major C to finish Primary Wave IV. Our xmas rally play was ripped off..

Europe(Germany and FTSE) both hit their downside targets(13-15%) which may have sparked the bottom and led the recovery.

Anyhow, let us continue to monitor and adjust things accordingly.