OIL Testing Major Support Level, Amid Stock Correction

Oil price fell sharply last week as US inventories rise and new developments regarding Iran. It wasn't until October 9, when price fell even further as a result of global stock market correction. Where oil fell as much as 6%. Now price is testing final support level of the bullish channel, which spans back to August. On a final note, the stock market (US, China, Australia) must be followed closely for potential catalysts and correlation.

Trade Step-ups:

Scenario One (Bullish Reversal): Price rejects a bearish breakout below 70.00. Look for a potential reversal to 73.00 and 76.00 respectively.

Scenario Two (Bearish Breakout): Price breaks the bullish channel, look for consolidation below 69.00. Price could fall further potentially all the way to 67.00.