Thursday, November 20, 2008

Thursday Oil Market Round-Up



Click for a larger image

Notice the following on the weekly chart:

-- Prices are at levels not seen since the beginning of 2007

-- All the SMAs are moving lower

-- The shorter SMAs are below the longer SMAs

-- Prices are below all the SMAs

BUT

-- The RSI is oversold, and

-- The MACD is oversold



Click for a larger image

Notice the following on the daily chart:

-- Prices have been dropping for four and a half months

-- All the SMAs are moving lower

-- The shorter SMAs are below the longer SMAs

-- Prices are below all the SMAs

BUT:

-- The MACD is rising

Bottom line: The rising MACD on the daily chart indicates prices want to move higher. Add to that the oversold RSI and MACD on the weekly chart and the possibility of a bear market rally emerges. But there is tremendous downward momentum in the market right now that may thwart the rally.