Oil Hits $100 Again, But Not For Long
As usual these days, the big story in the markets was Crude Oil. Today, the price was briefly over $100 on the February contract (CLG8), as the high was put in around mid-day at $100.09. This level held for but a few minutes before the bears came in to bring things back to double digits. After that, the price was event below $99 for a short time, and at the time of this writing, the price was lingering at $99.17. The biggest news event on the Oil front was inventories, which were down 4 million barrels to 289.6 million for last week.
On the chart, we are now trading well above both moving averages following a cross of the averages last month. Since then, the bias has continued on into uncharted territory to the upside, with little apparent resistance past today’s high. Buyers of new highs are really beginning to pay attention. On the downside, the nearest level of support is around the $90 level set in mid-December. According to the stochastic indicator, Crude is approaching overbought levels.
Mike Tosaw, Director of Education
