Tuesday, March 17, 2009

Oil Closes Above Its 50 Day Average

Oil was up again today with USO closing above its 50 day moving average for the first time since this bear market began. If you look carefully at the last few weeks you'll notice a series of higher highs and higher lows beginning to develop. I think the technical picture is showing clear signs that the seasonal rally is beginning to take place. We'll see what happens.


mr rolfsson said...

But on low volume. Does this mean anything?

dacian said...

Hi Kevin, thanks for this update. Do you have a "mental" target for the oil?

Kevin said...

Hi Mr. Rolfsson,

We'll soon find out if the low volume means anything...Good point.

Hi Dacian,

This is a seasonal trade which means I am more interested in time than price. If this trade works, I expect oil to rally into late May and maybe even June. Whatever the the price may be at that time is my target.

6:12 AM


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