- Posted by Greg Harmon
- on October 22nd, 2013
West Texas Intermediate Crude Oil (WTIC, $CL_F, $USO) looked read to head to the stars this summer. In July in Time to Strike a Gusher in Crude Oil with Crude at 101 it had a a very bright future and a retest of the all time high at 147 was in the cards. Things got a little more cautious after it consolidated and in August in Embrace the Crude Oil Move Higher 120 still seemed within reach. It got as high as 112.24 on a rolling forward basis but then fell on hard time. With the move lower Monday it has now retraced about 50% of the move higher and the prospects look better for more downside. Perhaps the
200 day Simple Moving Average (SMA) underneath will give it support, but a move lower to the 61.8% retracement at 96 or support in the 90-92 area looks very doable. There are many macro characteristics of the market that this favors. First, there is no conflict that is flaring up to raise the cost of oil which could also create a nervous environment for stocks. It also suggest that inflation is not a problem. Lower Oil prices leading to lower gas prices is also often used to show a positive environment for the consumer. What is your Crude Reality?
Want to learn more about Dragonfly Capital Views?
Dragonfly Capital Views Performance Through October 2013 Expiry and sign up here for the free 7 day trial before you pay.
If you like what you see above sign up for deeper analysis and trading strategy by using the Get Premium button above. As always you can see details of individual charts and more on my StockTwits page.
The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.blog comments powered by Disqus
Gregory W. Harmon CMT, CFA, has traded in the Securities markets since 1986. He has held senior positions including Head of Global Trading, Head of Product Development, Head of Strategy and Director of Equity. (More)
- Put Raytheon on Your Radar
- Premium Earnings 3-2-15
- Top Trade Ideas for the Week March 2, 2015: Bonus Idea
- Top Trade Ideas for the Week of March 2, 2015: The Rest
- Top Trade Ideas for the Week of March 2, 2015: The Rest Premium
- Top Trade Ideas for the Week of March 2, 2015: The Best
- SPY Trends and Influencers February 28, 2015
- Macro Week in Review/Preview February 27, 2015
- Is Your Portfolio Compatible with the Year of the Goat?
- Benzinga Premarket Talk Thursday Morning