Oil jumping on Nigerian concerns, but looking at the CL/QM March contract chart, you have to wonder how many times we can bounce off 57.50 before heading lower. Head and shoulder forming on the daily, with a possible right shoulder building. This could mean a bounce to 63 or so, but if that area fails, it would confirm the H&S pattern and set up a break of the neckline at 57.50. Target would then be 51 or so. Watch Canadian and Japanese currencies. The Canadian dollar benefits from higher oil and the Japanese Yen suffers from it. We will see what happens once the dust settles in Nigeria.
This entry was posted
on Saturday, February 18, 2006 at 9:04 AM.
