Tuesday, June 14, 2005

Crude Oil

The rally in crude oil made new highs yesterday at 56.00 contrary to my expectation. The hourly chart above shows my current analysis of the situation.

I think the pair of resistance levels indicated on the chart will halt this rally if they haven’t already done so. The blue line is the ¾ division point of the first bear market down from the April 4 high at 58.28. This box is $8.64 high and the ¾ point stands at 56.13. The black line marks the April 25 top in crude which occurred at 56.00.

I still think this is a bear market in crude which will carry the market below $30 over the next couple of years.

No comments: