Thursday, December 10, 2009

Black Gold, Texas Tea - (Oil That Is)

I thought I would sling out a $WTIC chart of light sweet crude for you to see. Why? I think it could be nearing a turning point and you may want to run out and fill up the SUV first. Save some cash before Xmas. Call it my present to you. (that is of course if the price of gas ever adjusts down appropriately)

$WTIC daily - Is it the blue channel support or the pink dashed TL or is it a backtest of the last triangle top TL? The stopping forces now are the completed 62% retracement, the blownout lower BB, the RSI5 bottoming out and the pink LT TL being met. The downward move still has some legs if you look at the lacking divergence in RSI and that it has some room to fall still. S Sto and CCI still have some room to run as well.

Bottom line is that it looks like oil will be bottoming soon. The big question is what is to come? Is this the long lost 5th wave up? Will it be the first corrective of a larger fall? I think oil has topped or has limited upside from here (barring a war). I am still drawn to the lower black TL as a target. I just like where it breaches the gray box/retracement zone. That may be a bit much to ask now, but if we should have some difficult economic news (LOL - that was a joke - who would expect any bad economic news?), who knows? GL out there!