This kind of chartistry, aka "technical analysis", has as many interpretations as do tea leaves. Many would say that as a price falls towards a support level we would predict it to stop falling. As it touches that price we say it is testing the support. And if it punches through, as we see in the oil chart, we say that the support has failed, this is a breakout and we can expect a further strong price move downward. Chartists who follow this interpretation will be going short, not long like the people in your story.

See, you can make the charts say anything you want.