Oil Takes a Climb
Crude Oil continued its bull run today with an extension of yesterday’s rally. The high of the day was almost $95 (94.85) on the December contract (CLF8) with the low at $89.26 – more than a 5% range. The big news of the day didn’t hurt the Oil bulls, of course – U.S. inventories came in lower for the fourth straight week.
On the chart, we can expand on our discussion from yesterday, as we closed above both of the moving averages. In addition, the slow stochastic places Crude squarely in the middle – with no indication of an overbought or oversold marketplace. Therefore, we have a new picture to look at when it comes to the Crude chart. With the price sitting above both moving averages, these lines may act as support, possibly paving the way for the breakthrough to 100. However, Oil bears may see the beginning of a head and shoulders pattern that started at the beginning of November.
Tomorrow's economic calendar includes retail sales, PPI, initial claims, and business inventories.
Mike Tosaw, Director of Education
