AI
Friday, February 19, 2010 9:32:22 AM
Re: $WTIC & $GASO - WEEKLY Charts: BEARISH
Hi, Tony!
RSI continues a sustained submission to its resistance line, forming a long-term negative divergence with price.
While this technical sign of impending weakness remains subtle, the line chart underneath this main chart indicates other oil or energy-related indices/ETFs expressed in relative strength against $SPX. Here, the issue is that despite a retracement from lows in $WTIC, the entire oil energy sector is likely to remain under bearish pressure, especially if the countries that traditionally drive the demand from once thriving economy are now cutting back on fuel consumption.
As indicated before, look for more fundamental news from Europe (The UK deficit news from this morning sounds catastrophic, but surprisingly remains low-key throughout most major news media network as of yet), as well as the middle east (Have I read incorrectly that the tallest hotel in Dubai closed down, while the deficit continues to grow there with yet no clear debt-management plan offered), and Asia where China is growingly under pressure to let its currency reflect its real value, hence potentially negatively impacting on its future export revenues.
Lots of very important economic and political world events going on at the moment, the impact of which is likely to pull US indices down, IMHO.
$WTIC - 36-Mo., Weekly Chart:
$GASO - 60-Mo., Weekly Chart:
- Dalcindo
Hi, Tony!
RSI continues a sustained submission to its resistance line, forming a long-term negative divergence with price.
While this technical sign of impending weakness remains subtle, the line chart underneath this main chart indicates other oil or energy-related indices/ETFs expressed in relative strength against $SPX. Here, the issue is that despite a retracement from lows in $WTIC, the entire oil energy sector is likely to remain under bearish pressure, especially if the countries that traditionally drive the demand from once thriving economy are now cutting back on fuel consumption.
As indicated before, look for more fundamental news from Europe (The UK deficit news from this morning sounds catastrophic, but surprisingly remains low-key throughout most major news media network as of yet), as well as the middle east (Have I read incorrectly that the tallest hotel in Dubai closed down, while the deficit continues to grow there with yet no clear debt-management plan offered), and Asia where China is growingly under pressure to let its currency reflect its real value, hence potentially negatively impacting on its future export revenues.
Lots of very important economic and political world events going on at the moment, the impact of which is likely to pull US indices down, IMHO.
$WTIC - 36-Mo., Weekly Chart:
$GASO - 60-Mo., Weekly Chart:
- Dalcindo
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