Tuesday, December 05, 2006

Crude Oil

Here is an hourly chart of January '07 crude oil futures. I last commented on this market here.

The market has dropped to support that I estimate stands near 61.50. Note the wide range down bar which carried the market to this support level. So far there has been no follow through to this selling. Since the market hit support I am willing to bet that this was an exhaustion bar and that the next development will be a rally to 65.00

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