OracleTrading

[bowonwing]

Oil <$120, maybe. Sound crazy right now, I know. But read on:

S&P's Energy chart (XLE) closed at $80.70 on 7-10-08 and has a bearish price objective of $69.00.
AMEX oil chart ($XOI) closed at 1,404, bearish PO $1270.
CRB Commodity Index ($CRB) closed at $448, MA(50) 435, (200)385.
Take a look at these charts at StockCharts.com and tell me what you see.

First oil needs go <$131.
If, if oil goes <$120, the bull market in oil MAY be over.
Way? How about a world wide slowdown/recession, in which oil consumption MAY slow down. What until the Olympics are over at the end of August.

Caveat: Middle East, e.g. Israel-Iran conflict- ALL BETS ARE OFF, oil will probably soar back to >$140++, which is what happened today, 7-12-08. Yes there is HIGH risk in projecting lower oil prices.
Do your own DD, GLTA.