crude technicals

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setliff
Posts: 1823
Joined: Tue Apr 27, 2010 12:15 pm

crude technicals

Post by setliff »

two bullish signals today---

strongest, imo, is on the weekly chart. there was a piercing pattern formed at the close today. this is a strong indication of a bottom to the down trend.

the other is the fact that the short covering toward the close pierced the resistance at 46-47 to close well above 47.
dan_s
Posts: 37308
Joined: Fri Apr 23, 2010 8:22 am

Re: crude technicals

Post by dan_s »

The best thing about Friday's late rally in crude oil prices is that it has made a lot of shorts nervous. I think they now know their upside (crude prices going lower) is small compared to their downside (crude prices going higher).

I agree this is a sign we may have seen the low for oil prices.

Can you imagine the huge short covering rally if OPEC announces an emergency meeting!

I past big price dips it usually takes about three months to form a bottom then the steady move up begins as the non-commercial shorts cover and then go long.
Dan Steffens
Energy Prospectus Group
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