Is oil close to a summer tradeable bottom?
Close:
Dead stop for the CL September contract right at April high (117). There is risk to 116.20, 50% 2008, but the area looks ripe for an upside correction. Resistance is the 20 weekly at 125.44.
The COMP went as high as 2385.77, not far from its June 25 gap close (2401). Option expiration week often gets clues (lows or highs) from the prior Thursday and Friday (tomorrow).
If oil is about to bounce, has gold also found some support? Looking at the December contract, if you eliminate the freak May drop (that lasted a few seconds) it is quite clear that gold is actually still holding the May trendline. I would not be short the metal down here unless the trendline breaks. There are now more than enough commodity disbelievers out there to give us a bear market squeeze. If equities can do it, so can these old trouble makers.
This entry was posted
on Wednesday, August 06, 2008 at 8/06/2008 07:55:00 PM.
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