Legend For Phase Chart:
1: Recovery-1: Warning
2: Accumulation-2: Distribution
3: Bullish-3: Bearish

Monday, November 3, 2008

Bearish Oil




Oil continues to trade with a “bearish” bias. The USO chart shows that oil has been trading in “Bearish” phase since the beginning of October.

With the story of a slow down in economy together with strengthening of the US dollar, this bearish trend looks set to continue.

The chart shows a pivot point at $50.44. If price falls through this level, it will confirm the downtrend and price is likely to fall to the $42 region.

The 50 day moving average is now at $75 and 200 day moving average is at $88. These 2 levels form the resistance going forward.

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