AI
Saturday, December 01, 2007 3:30:01 PM
Oil - WTIC monthly. While my read from 1-year ago for oil has been off for the past 6-months, this monthly chart shows the big picture well. The highs in November slightly pierced the long term monthly rising resistance going back to the 37.80 highs in 2000 through the 70.85 highs in 2005.
There are two main lower rising support lines. One is currently at $62.50 and rising, and the other is at about $49.00
I think it's a lock we'll hit the higher rising support around $72 by spring, and there's even a chance the lower rising support could be in play around May if things get nasty.
The key is the "mirror" pattern on the 13,8,3 full stochs. It's played out quite well, and shows a 5-month drop from the highs is due. The last time the indicator had this type of set-up, oil dropped from $37.80 to $17.12 from late 2000 to late 2001. It's also interesting to note the economy wasn't doing so well then either.
There are two main lower rising support lines. One is currently at $62.50 and rising, and the other is at about $49.00
I think it's a lock we'll hit the higher rising support around $72 by spring, and there's even a chance the lower rising support could be in play around May if things get nasty.
The key is the "mirror" pattern on the 13,8,3 full stochs. It's played out quite well, and shows a 5-month drop from the highs is due. The last time the indicator had this type of set-up, oil dropped from $37.80 to $17.12 from late 2000 to late 2001. It's also interesting to note the economy wasn't doing so well then either.
http://www.investorshub.com/boards/board.asp?board_id=1613
AJTJ's Market Pulse
Do your own DD. Void where prohibited. Observed side effects include darkening of the stool, spontaneous amputation, and death. Rosebud.
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