Oil has been in the news more than usual lately due to the 50+% price drop since late 2014 and a continuation of the sell-off in the past few weeks after a brief recovery. However, as you can see from the chart above, Oil has reached its long term (multi decade) price support levels at around 40$ and at these levels a quick (possibly sustained) bounce up is very likely. Another thing to note is that the price is currently deviated substantially from the long term moving averages and this kind of price action is never sustainable for extended periods of time. (I had warned about Chinese equities in April this year based on the same principles). With these factors in view, I believe oil is likely to form a base soon and possibly rally strongly in the next few months. Fundamental perspective Looking at oil price from ......