Saturday, October 25, 2008

Crude Oil - A Look At The Big Picture

As you know oil prices have been falling precipitously over the past few months which is why I think it's a good idea to post the above chart to help put things into perspective.

Above is a monthly bar chart of crude oil going back to 1998 which is when this bull market began. The low of $10.35 was made in December 1998 and rallied to a high of $147.90 made in July of 2008. That's a rally of $137.55! Since last July crude oil has declined sharply and is now testing the .618% Fibonacci retracement level.

What I find interesting about this month's price action is that the price range for the month of October is the largest bar on the chart! This gives you an idea as to just how fast this market is dropping. Whether or not crude oil continues to fall remains to be seen but for now I'll just enjoy these lower gasoline prices.

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