Crude Oil Key Support Zone Analysis
Crude Oil Analysis
I’ve wanted to do an update on the crude oil market for a few days now, but unfortunately time got away from me. In my new video on crude oil, I update some of the thoughts I had before, but also some important elements that are still in play and could push this market significantly higher.
In this new video I outline the key support zone that I see and also highlight some other technical elements could come into play to push this market higher.
video: Crude Oil Analysis
The recent run to 10,000 on the DOW might be over for a short time. Yes, the 10,000 mark is a psycological ceiling, but we have a few other things occuring that will help slow things down. It’s options expiration time for one. Second the number of shares short on the market has dropped significantly enough to support the assumption that the recent run-up to 10,000 was supported by short covering.
While I don’t believe in a direct or linear correlation between oil and the dollar, The sentiment in general is that oil tracks the dollar to a large extent. As long as the crowd believes this then it is worth paying attention to. For the time being, I’m moving away from traditional equities and watching the OIL/US dollar.
The US Dollar is in a general down trend so I expect oil to move up over the near term. One way to trade commodities and avoid messing with futures contracts is the iPath S&P SCGI Oil ETF (quote analysis).
I’ll be watching the dollar too.
