Thursday, May 11, 2006
Here is a highly condensed hourl bar chart showing pit and electronic trading in June crude oil futures. I last commented on this chart here.
I thought that crude oil would drop to the 6 5/8 multiple of the 1986 low of 9.75 before it would rally as much as $3. In the even the market essentially has stayed within the trading range bounded by the 7 1/8 and the 7 5/8 mutliples. It is approaching the 7 5/8 multiple today and I think that the next move will be down to the 6 5/8 multiple near 64.60.