Monday, July 8, 2013
WTIC Light Crude Oil Weekly and Daily Charts Sideways Symmetrical Triangle
The daily chart clearly shows the big up in oil over the last two weeks due to the Egypt, Syria and Turkey turmoil. Price breaks out of hte sideways 92-98 range. The price move has serious momo behind it so you do not want to step in front of that train to short it. The move higher is a breakout of the long-term sideways symmetrical triangle. The vertical side of the triangle is about 35-40 bucks so that targets 120+. Of course if the Middle East turmoil subsides, the price premium will deflate quickly. Both daily and weekly charts are at or near overbot levels which is not agreeable to seeing a huge move higher from here, but again, if the world is coming to an end in the Middle East, oil will be 120+ in a heart beat. If the charts had their way, oil price would line out sideways moving forward with some further upside buoyancy, followed by a roll over to the downside.
Over time, a new, more stretched-out sideways triangle may develop, shown by the blue lines on the weekly chart. Projection is for continued action in the 102-109 area for the days and perhaps couple weeks or so ahead followed by a flattening of price and roll over back to the downside. Of course, if the Middle East turmoil grows, oil continues higher. The higher oil price will send the gasoline price higher for the summer driving season. The oil and dollar relationship has broken down since the dollar is moving higher and oil is moving higher. Typically they should move inverse to each other. This verifies that the Middle East violence is creating the higher price move. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.