Let's look at oil, which is on a slippery slope, but don't count it out, or expect some kind of bear market. The winter is approaching and heating oil demand will rise once again. This chart shows the summer head and shoulder and the ensuing downward projection, around 58.85. We also have prior double bottom support around 58.10 below that and the descending trendline intersection. The 200 dma is not far at 57.60. I would be a long term buyer of oil in the area between 57.50 and 58.50. I am not sure 59 will hold as support in the next few days, so be a little careful and wait for the drop to low 58 zone.
This entry was posted
on Monday, October 31, 2005 at 6:58 PM.
