Friday, June 03, 2005 4:59:47 PM
BEWARE THE OIL SLICK!
by Clif Droke- June 2, 2005
http://www.financialsense.com/editorials/droke/2005/0602.html
The crude oil price remains an abiding concern for Wall Street as witnessed by the almost inverse correlation between daily stock market and oil price fluctuations. The sharp rally in crude oil, while not completely escaping the notice of the financial press, has been ignored by most investors as euphoria and greed are the dominant emotions right now. But as experienced traders well know, these are emotions that typically precede market peaks.
In my commentary of two weeks ago entitled "Keeping Inflation Under Wraps for Wal-Mart" I remarked, "The latest crude oil price graph below shows that a lingering wave of upside momentum, as reflected in the 200-day moving average, has come to the rescue for the oil price to provide temporary support. Oil should be able to remain buoyant for a while considering that its 90-day and 200-day moving averages are still rising, with a zone of resistance between $52.00-$54.00 and support around the $47.00 area." So far this has been the case and the recent oil mini-rally has once again picked up steam.
by Clif Droke- June 2, 2005
http://www.financialsense.com/editorials/droke/2005/0602.html
The crude oil price remains an abiding concern for Wall Street as witnessed by the almost inverse correlation between daily stock market and oil price fluctuations. The sharp rally in crude oil, while not completely escaping the notice of the financial press, has been ignored by most investors as euphoria and greed are the dominant emotions right now. But as experienced traders well know, these are emotions that typically precede market peaks.
In my commentary of two weeks ago entitled "Keeping Inflation Under Wraps for Wal-Mart" I remarked, "The latest crude oil price graph below shows that a lingering wave of upside momentum, as reflected in the 200-day moving average, has come to the rescue for the oil price to provide temporary support. Oil should be able to remain buoyant for a while considering that its 90-day and 200-day moving averages are still rising, with a zone of resistance between $52.00-$54.00 and support around the $47.00 area." So far this has been the case and the recent oil mini-rally has once again picked up steam.
Join the InvestorsHub Community
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
