I mentioned a few days ago that oil was a sell below 74 and it sure took my word for it. Here as well, if you stayed with the crowd too long, you got hurt. The combined loss of 50 dma, trendline support and 61.8% pretty much ensures a retest of June lows near 69.50. Immediate resistance is 71.85. QM/CL is very fickle to trade, but when it gets on a course, it just keeps going like most commoditites. Oversold conditions will soon produce a bounce, but failure to regain 73.40 should result in more downside. Oil bulls need a hurricane now. On the subject of hurricanes, keep an eye on these formations: Link
This entry was posted
on Wednesday, August 16, 2006 at 5:52 PM.
