On Saturday, I recommending watching the 81.525/81.85 (QM mini) area for any weakness in November oil. These levels did not hold and we have seen a drop to the lower 80 level. At this point, unless there is a new geo-political event, increased hedging by producers could push prices down as they short forward contracts in order to lock in price. Long speculators could feel some heat if 81 (CL full) acts as resistance. Above 81.55, bulls regain control. Lower initial target is still the 10 dma, now at 80.05. If that breaks we could see 78.50, weekly S1. Upside risk above 81.55 is 81.82 and 82.20.
Note: most retail traders use QM, the e-mini, but funds and producers use the full contract, CL, so I normally post the CL chart but give some more specific QM prices at times.
Note: most retail traders use QM, the e-mini, but funds and producers use the full contract, CL, so I normally post the CL chart but give some more specific QM prices at times.
This entry was posted
on Monday, September 24, 2007 at 9/24/2007 09:41:00 PM.
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