Crude Oil Taking A Breather?

By: Terence Lee Chan Saturday, November 07, 2009 6:12 PM

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Market Club has released its new technical analysis video on Crude Oil. They think its a flag pattern and is headed higher in the short-term. I am also bullish on crude oil, but I think more of a sideways consolidation/correction pattern is in play in the short-term, and I don't treat the pattern as a flag. This is as the MACD has crossed down, indicating too little momentum for this to be a continuation flag pattern. I think a trading range of $75.70 to $82.20 is in play. A break below $75.70 would take us to $73.70. I do think however than longer-term we are headed towards the $90 level for crude oil. Watch for the MACD to flatten near the zero level as an indication that there is enough duration for the current area pattern, and for a resumption of the upward trend to continue. Just range trade for the meantime.

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