Tuesday, July 14, 2009
Oil Update, Technical Analysis at its best!
We talked about the short term direction of oil and gold a couple of weeks ago in a previous post, let's take a look at what is going on.
As you can see from our chart we had the breakdown of the head and shoulders pattern, at that point our price target calculation came out at $58 and some change, right at trendline support and 200 sma support. Well our low came in Friday at $58.71!
For anyone that got in at that level, congrats to you. We said that was a great opportunity to go long for a short term to intermediate term trade, put your stop slightly above the $59 mark and let it ride! This energy sector may be the catalyst with the financials overinflated earnings to form our second right shoulder.
I am still very bearish, look at the vix charts I posted awhile ago. I will repost the updated charts sometime this week. it is hitting support on many timeframes and I believe a spike in the Vix should be coming in the very near future. Till then trade very carefully, I still have my NQ short but am only trying to break even and wait for a setup at higher prices to short and make up for yesterday and then some!