Oil New Highs Out Of The Picture?
Posted on Thu 19th Jun, 2008 11:49:54 PM
Taking a closer look at the United States Oil Fund (USO) you can see today’s heavier volume bearish close right near session lows. Could this be the momentum to push oil out of the new highs striking range?
The ETF tracking the price of light sweet crude is still technically trading within the latest horizontal channel as of the close today. But, a bearish break out of the channel to the downside could spark a quick 5 – 8% price retreat.
Perhaps a short term price break would be good for the commodity? Just don’t tell that to the analysts that have price targets of $150 – $180 (per barrel) slapped on the precious commodity by the year’s end.
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Hey BrianF,
I think this is my first comment on your blog.. I too am a Zanger subscriber, but I enjoy your posts as well.
I believe you could be dead on the money here with your analysis of oil. Of course the analysts are going to project sky-high prices.. but that’s nothing new (they also predicted GOOG to 1000 soon after it broke 700).. anyhow, as we both know.. the chart patterns speak volumes over analysts, and I think you’re right with expecting some relief on the prices soon.
We’ll see how it turns out.
Cheers,
Len
Well welcome to the community Len. Oil is up right out of the gate today and really it is to no surprise as the commodity is ridiculously volatile. Should be fun to watch though, cheers!