Monday, December 12, 2005

Crude Oil

Here is an updated hourly chart of January '06 crude oil futures.

I have drawn in the "1/8 's" multiples of the all time low in futures trading which occurred in April 1986 at $9.75.

As you can see the market has been finding support at the 6 1/8 level and now looks like it is headed for the 6 3/8 level around 62.15. From there I expect a reaction down to the 5 7/8 level around 57.30 and finally a rally to 6 5/8 near 64.60.

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