Monday, March 19, 2007

Oil Market Update

Here's a daily chart for oil:

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The market gapped down last week. Now it's resting on the 50-day SMA. Gaps down are usually bearish signals, as they indicate selling pressure is strong enough to force prices to open lower.

Here's a weekly chart to place last week's action in longer-term perspective. I'm going to put this one up twice with two different analysis.

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The oil market broke the downtrend. Now the downtrend may move from resistance to support. We'll have to wait until Friday to see how this closes.

Here's another look:

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Oil is consolidating in a triangle formation.

Let me add my standard TA caveat: TA isn't an exact science; the markets will do anything and everything they can to make an ass of you.