Thursday, September 14, 2006

Crude Oil

Here is a daily chart of October crude oil futures. I last commented on this market here.

I had expected a rally from roughly the 68.00 level but the market has turned out to be even weaker than I expected. The drop from the last top at 78.80 in early August shows no sign of slowing down. So I conclude that the market is probably headed for the 1/2 division point of the next lower box which stands at the 58.80 level. From there I would expect a rally of 5 to 10 dollars to commence.

No comments: