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Re: sweet crude post# 362

Tuesday, 11/28/2006 5:17:14 PM

Tuesday, November 28, 2006 5:17:14 PM

Post# of 3578
No problem, here are your crude oil charts:

First off, let's look at a weekly chart so that you can see the ‘big picture’. As you can see from the chart below, crude oil found support at an uptrend line going back to late 2001; current price levels were obviously a logical place for crude oil to form a bottom and begin a rally.

http://tinyurl.com/y8xcsn

Next, here's a long-term daily chart of crude oil. This chart is useful because it tells us that formerly the 250-day moving average acted as strong support for crude oil. Once this key moving average was broken, it becomes resistance. Therefore my "short-term" price target for crude oil is a back-test of the 250-day moving average at $66.5. The 250 MA is now resistance, but once it is broken to the upside, crude oil will be ready to run and test the highs again, however that MA will likely be a sticking point at least on the first test. Also take note of the MACD indicator at the bottom of the chart. This is called positive divergence, which is a technical situation where the price of a stock makes new lows but the indicator is trending up. When this happens, it tells you that a price reversal to the upside will usually occur.,

http://tinyurl.com/tztk8

Next, here's a 1-year daily chart of crude oil. Crude oil recently broke out of a bullish falling wedge and note the strong positive divergence via the MACD at the bottom. Again, a good price price target on this run would be the 250-day MA.

http://tinyurl.com/y8lbvx

And finally, I am personally long the stock USO. USO is the ETF for crude oil. My price target is about $60 for USO on this initial runup. USO is the easiest way to play crude oil without buy futures.

http://tinyurl.com/y8px9t

Hope this helps. If you need any other charts, let me know.
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