Mapping the market: Oil may be in for a slide
USO•U.S. crude is trading near $100, close to the top of this year's range, while two unfilled price gaps below the market could become downside targets: $83.40-$84.69 and $67.02-$75.00. The article cautions that gaps are not guarantees and that prolonged conflict or supply disruption could keep prices elevated.
1. Gaps below the market
Volatile trading during the Iran war left several gaps on the West Texas Intermediate chart. Most have since been filled, but two remain partly or completely open below current prices, suggesting the market may eventually trade back through those ranges.
2. Potential downside levels
The nearest gap runs from the August 28 close of $83.40 to the August 31 open of $84.69, roughly $15 below prices around $100. A larger, partly filled gap runs from the February 27 close of $67.02 to the March 2 open of $75.00, when oil jumped over an $8 range. Gaps can remain open for long periods, and a prolonged conflict or supply disruption could keep crude prices elevated.
