Oil Breaks 200 Day Moving Average – Updated Chart
- Posted by JC Parets
- on November 7th, 2011
I’m noticing more and more conversations about Crude Oil lately. We brought this up for the first time in a while on October 25th when $CL_F first broke above its downtrend line. That break held and today it’s been battling the 200-day Moving Average.
Take a look at the chart below. I realize that there are a lot more colors and lines than I normally approve of, but bear with me:
Currently, Crude Oil is testing, not just the 200-day Moving Average, but also the 50% retracement of the May highs to August lows. $100 bucks is the next point of interest here as it represents the June highs as well as the 61.8% Fibonacci retracement. This moves appears to have some legs: after breaking out, it has managed to consolidate nicely allowing the 50-day moving average to turn up and play a little catch-up with the price.
MacNeil Curry, technician at $BAC/$ML came out with a note today that Commodities could rise 6% over the next 3 weeks. If he’s right, Oil will most likely benefit (it is the biggest component of the $CRB Index). Here is the chart showing exactly what Mr. Curry is talking about in the Bloomberg Article:
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J.C. Parets is the Founder & President of Eagle Bay Capital, LLC. He earned the Chartered Market Technician designation (CMT) and is a member of the Market Technicians Association. More
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