Wang Tao

If the pollution was as bad as it was 10 years ago, there's no wa... by Wang Tao

If the pollution was as bad as it was 10 years ago, there's no way I would have moved back.

The bounce from $38.99 has been almost reversed, signaling a continuation of the downtrend from the $50.92, which may extend below $38.99.

The market is not a silver bullet, and a support system needs to be put in place to have the best impact, but it is a welcome step forward nevertheless.

Given the difficulties we have seen in calculating inventory, MRV (measuring, reporting and verification) and compliance, it is likely that the national market will start with heavy industries above a certain threshold in size, which will give the market more credibility and reliability from the beginning.

I prefer a bearish bias, both WTI and Brent may correct in this week before seeking their next direction.

Brent oil may break a resistance at $48.80 per barrel and rise more to $49.53, as indicated by its wave pattern and a Fibonacci projection analysis, support is at $47.51, the 61.8 percent Fibonacci retracement on the rise from $45.59 to $50.62, a break below which will lead to a further loss to $46.78, the 76.4 percent retracement.