Shares of crude oil collapsed sharply today, falling over 5% to $50. The selling began slowly after inventories showed a monster build. In addition, U.S. production was up sharply again, over 9 million barrels a day. Lastly, it has been wildly reported that bullish sentiment on oil was at extreme highs. Any smart investor knows this is a great indicator of a fall. With oil trading near $50, the question needs to be asked, where will it find support. The first major support is $48.50. This level should yield a bounce but a very quick, few day bounce. Following that, another collapse should occur, taking oil to $42.00.
Commodity chart analysis for investors on crude oil collapse