Earlier this year (January 3rd, 2013), I wrote a blog suggesting that crude’s breakout from the triangle might target around $110/barrel. This is the chart that I printed, with my original target noted on the chart. Here’s the blog: http://www.valuetrend.ca/?p=1754
Technical targets do often work out!
WTI is currently breaking down from a consolidation pattern . Support, which came in around $103-$104, was recently broken. Relative strength was trending down, although a bit of reprieve has come in as the S&P500 sold off recently. I don’t see this as a bullish sign–more a sign of stock weakness than a sign of oil’s strength. While s/t momentum indicators are oversold, indicating s bit of near termed upside – the picture is not pretty thereafter. Seasonal patterns for oil slow down at this time of the year. And the decided break of the 50 day MA targets $98 – where old resistance (new support) and the 200 day MA come into play. I’m avoiding oil at this time. Traders may want to utilize any rally as an exit point.