Oil May Drop to $70 on Channel, SocGen Says: Technical Analysis

(Bloomberg) -- Crude oil prices may slide toward $70 a barrel in New York after breaching the bottom of a monthlong price channel, according to technical analysis by Societe Generale SA. Oil for January delivery fell as low as $72.39 a barrel on the New York Mercantile Exchange on Nov. 27, breaking through a “descending channel” that formed after the commodity reached a year-to-date high on Oct. 21. This may trigger a decline to the next supportive layer in a Fibonacci sequence of price thresholds, Societe Generale said.

http://www.bloomberg.com/apps/news?pid=newsarchive&sid=avD0P.KvZXvk