Monday, August 08, 2005

Crude Oil

Here is an updated hourly chart of September crude oil futures. The red lines show my estimates of the price boxes for the move up from the 56.50 level. As I said in this morning's guesstimate I think the market is headed for the top of its current box near 64.40.

The blue line you see is the 3/4 division point of the estimated long term box which extends from 40.40 to 70.40. I think a bull market top will be made very near this blue line and near current levels. Then crude will drop at least to the bottom of this long term box and more probably at least $30 from its top.

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