Technical Indicators

[dan_s]

As I write this at 4PM CT on December 11th all of the technical indicators have turned "Strong Buy" for WTI.

One person's technical analysis shows a new support level for WTI at $57.28 and support levels below that at $54.78, $52.55 and $50.85.

The WTI chart since Mid-June is "Super Bullish", yet the equities have not really participated. Something has to give and it sure looks like the stock prices have a lot of catching up to do.

All of my forecast/valuation models are based on $50 WTI and $3.00 Henry Hub natural gas. As of Friday's close, the Sweet 16 was 58% below my Fair Value Estimate for the group.

If I raise WTI to $55 the valuations go a lot higher.