Monday, August 04, 2008

Oil Heads Lower



The other day I bought oil as it appeared to have had a change of sentiment at a key support level but as you can see oil has gone lower once again.

Oil seems to be dragging down the entire commodity complex including gold and some commodity related market ETFs such as EWC, EWZ and EWA. At the moment I have no position in gold or oil and will remain on the sidelines until I see another low risk trading opportunity present itself.

4 comments:

MiningOilGasGuru said...

After browsing your blog, I have subscribed to your feeds. There is a lot of great advice and information available on this blog. I look forward to reading more!

parakeeps said...

Dear Kevin, I noticed you used candlesticks in the previous post about oil, but today you used bar charts. Why the switch? Thanks!

Kevin said...

Hi Parakeeps,

No reason for the switch...it's just cleaner looking to use bar charts. The other day there was a bullish engulfing pattern in oil which is a candlestick pattern so I posted a candlestick chart.

KT said...

Hello Kevin,
I stumbled onto your blog while researching head and shoulder patterns. I find it refreshing to find someone who is not trying to sell you something. I would like to know more about you. For now, I would like to know more about head and shoulder patterns. First, I use Profit Source. Is there a set of criteria one could put together to scan for these patterns? I notice you draw a line connecting the neckline, but it doesn't seem to serve any purpose whether it slants up or down. Does it matter what the stock has been doing? For instance, EMC in in a wave 4 sell pattern. Although the wave 3 retracement is outside my trading threshold, I could see myself entering a trade if the right shoulder develops. Is there any relationship regarding the magnitude of the shoulders with respect to the head? I guess that's enough questions for my first time.-Ken Moon-

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