Yes it's me, talking about my most hated commodity, evil oil. In our past article, we researched on how much of the oil movement is actually 60 to 90% based on speculation only and not on real demand movement. Way before that, we even touched how local pump prices seem to lead crude oil markets in raising their prices, while lagging crude oil declines in lowering their prices in the decline of crude last year.
Well, here comes oil again, in a textbook ascending triangle formation. The ascending triangle is a bullish formation that usually forms during an uptrend as a continuation pattern.
To cut the boring technical details, a break above $75 would give a measured move target of about $95. Something we'd hate to see but better prepare for. Perhaps seeing 95 would force Caucasian markets' policy makers who decide on paper speculation on oil to finally act to end this absurdity and ultimately keep spending money on the pockets of the consumers and not on the giant oil bigwigs.
Be that as it may, we can't fight city hall. How do we act on this probability. One may consider local oil shares OV and OPM
Having the same revenue stream from the Galoc consortium project, both charts move and act and look the same. Both charts have only recently broken out of a year long downtrend–a laggard compared to bluechips and even most second and third liners which are merely shell.
Initial slight resistance of .017 has already been tested once, and a break of this may see these near .022 to.024
This article goes out on a limb on any dow futures or china movement that were lower today, August 31 2009, and focuses only on the technical analysis mindset aspect.