Crude Oil - Tests Major Support

Today crude oil futures were sharply lower on the news that the IEA will pump more oil into the market.. If you look at the above weekly chart of crude oil, you will notice that the market  is testing a very significant uptrend line that began back in January 2009.

If you examine the last large pullback in this bulll market, you will see that we had a decline of 22.9% . Right now the market has declined 21.8% from its peak which is very similar to the previous pullback in terms of  price magnitude and time. Both pullbacks are exactly 7 weeks in duration.

If the bull market is going to continue, this should be the area where prices will rally from. As of now the uptrend is still in tact as long as this area holds.