Tuesday, November 15, 2005

Crude Oil

Here is a daily chart of January '06 crude oil futures. I have drawn the bear market boxes which are $8.35 wide and were defined by the first big break in the October '05 futures.

You can see that the bottom of the second box is around the 54.20 level and that is where I think January futures are headed. The market is now trading around the 1/2 point of that box but I think any rally from here will stop around 59.80.

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