Thursday, September 3, 2009
Will Crude Oil Follow Gold Higher?
Gold continues to rally with an intraday high today of $999.50. Gold mining stocks have been outperforming the metal itself, most believe that miners are not as hedged now. I've mentioned previously on this blog, that $GOLD has traded ahead of crude oil $WTIC by 4 -6 months. Looking at the annotated chart I've posted tonight, you can see that the same breakout formation is developing in crude oil. That $75 price has been resistance. Now the run up to $140+ was speculative driven. BUT...with gold breaking out this week...does this possibly suggest crude oil ($WTIC) breaking out over $75 by January 2010??? Indeed, something that needs to be monitored. If so and gold meanwhile continues to climb, on momentum I may add, then now maybe the time to begin accumulating energy stocks? One reason I suggested RIG (or the OIH), back in early July for the Itz Pix portfolio.
*click on chart to expand