Sunday, September 16, 2012

Narrowing Range in Crude Oil

Crude is looking a little extended in the short term after the past three months of rallying but this weekly chart shows a longer term neutral to slightly bullish formation. Crude has made lower highs and higher lows for about two years now forming a narrowing range currently ~$80-105. With all other equity markets heating up on QE3 I'l like to see crude at least challenge the top of this range, perhaps break out of it after some consolidation. It will be interesting to see if Crude can hold its 50 and 200 dmas, if not, $87 should provide good support. Clearing $115 would make for a beautiful chart, maybe for Christmas.

1 comment:

Anonymous said...

Take a look at these markets, retracing to where they broke down in May. This should attempt in this May high to be squeezed followed by consolidation to build a handle for the "U" turn / Cup.