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 is a 10-year veteran and Market Technician who actively manages money incorporating Technical Analysis and Behavioral Finance into his practice. JC’s work has been featured regularly on CNBC, Fox Business, Bloomberg, Business News Network, Wall Street Journal and Yahoo Finance among many other financial media outlets. More...
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