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By HaleStewart October 1, 2015 8:32 am
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Oil May be Forming A Double Bottom on the Weekly Chart

On the weekly chart, oil prices are again consolidating around the ~43 price level -- an area they used for technical support earlier this year.  This could the be the second dip of a larger double bottom pattern.  If so, it will take awhile (at least another few months) to play out.

Be cautious: the chart still contains very negative technical developments.  First, all the EMAs are moving lower.  Additionally, the shorter EMAs are below the longer EMAs and prices are below all the EMAs.  This is the most bearish technical alignment possible.  And while momentum is increasing, it is still negative.        

But prices are holding at a previously used technical level, supporting the potential double bottom theory.

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