The peculiar rise in oil is finaly starting to knock the wind out of the bull's sails. Switching to the November contract, 23.6% projection August is now support at 79.34 with resistance at 80.625. Note that we have a confluence of weekly R2 and monthly R2 at 81.85. The current contract (October) is set to expire on the 20th and is trading about a dollar higher but it looks like the game was to take November above 80. There are not many fundamental reasons behind this rally, especially with the dollar starting to move up, but many hedge funds face massive redemptions at the end of the quarter and this is an easy way to raise cash. Just be forwarned that the drop will be just as fierce as the rise.
This entry was posted
on Monday, September 17, 2007 at 9/17/2007 09:04:00 PM.
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