For the second session in a row, spot crude (CL) settled below a key long term trend line support. I personally will have a sell stop triggered if crude settles below 85.0 An ugly settlement like that should send the bulls for cover. That being said, there is a ton of support on the charts between 83 and 70. I personally like buying the 82.level That would be an even 10.00 bucks of the panic high posted 3 weeks ago. So that’s the rec. Get short and look to cover 82.00 Crude could catch a bid at any point during a probe of that support. So if you are short, and sitting on profits, make sure you have protective buy stops to insure profitability. Crude has been on a 2 year, 60.00 dollar rally.
Yes, that’s right, 2 years and 60 dollars from its Jan 16th 2009 low at 33.20…Lol
Where was Maxine Water’s then? Where was Hillary Clinton Then? Crude broke 114.00 from the July 2007 high at 147.27. They wanted to punish the ‘greedy oil companies’ who had the audacity to profit from the age old supply/demand law.
I am sure there were politicians aplenty salivating waiting recently for Crude Oil to go back to the “magically painful” psychological number of 100 a barrel.
Longer term, I want to say that we will get there. I think we will get there this Summer. or October 2011 at the latest. That’s what the long term trend is projecting towards.
But I think that’s a function more of inflation, dollar weakness, and incredible world wide demand.
The US consumer can’t have GM selling record amounts of cars in China, and not expect those Chinese to want a side order of Gasoline.. That demand is going to fight us for our demand.
Also, from what I know, China does not have anything resembling the EPA trying to fix their pollution problem, or having to deal with Al Gore talking about global warming. In China, you have one billion people on a manifest destiny tract. They look like the USA in 1850… The car for them will be what the railroad was for the USA in the 1850’s.