Crude Oil

Here is an hourly bar chart of pit trading in January '07 crude oil futures. I last commented on this market here.

I am switching to the January contract today; it has been trading about 2 dollars over December.

The market is putting in a wide range downside breakout bar as you can see on the chart and this means that it is headed for the 59.20 level. I still think crude oil will rally substantially from the low end of the 4 dollar trading range which has confined it for the past 6 weeks.