Monday, November 07, 2005

Crude Oil

Here is an hourly chart of pit trading in December crude oil.

I think the market is headed for the 1/2 point of the next lower box at 57.90. I think the next big rally of several dollars will probably start once the 55.60 level is reached. This is the 3/4 divsion point of the all time range in futures from 9.75 to 70.90.

I also think that a bear market started from the 70.90 level. It will probably carry crude down to at least the 1/2 divison point of the all time range near 40.00. In fact I think a drop to 1/2 the all time high at 35.45 is even more likely.

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