Thursday, February 18, 2010

Euro, Dollar, Crude Oil, PDE & RIG

The last several days have been choppy for commodity prices. In part due to the Euro and concerns with Greece. One tries to position and set some future direction and I have suggested that the Euro would bounce near term and have targeted the 1.39/1.40 level and the 78 level on the US Dollar ($USD). I have also been bullish on energy (crude oil/$WTIC) as well as gold, silver and copper (GDX,SLW,FXC).
Below is a seasonal chart of crude oil, historically it has risen from March thru October.

In the Itz Pix portfolio I have suggested 2 drillers- Pride International (PDE) and Transocean (RIG), I have also suggested gas LP's PGH & PWE as well as Suncor Energy (SU). Today PDE reported earnings and the report was negative >> READ

It is testing recent lows and close to it's 200-ma. If you were to pull up a chart of RIG it to is near it's 200ma. The last time RIG tested the 200-ma was July of 2009, where Itz Pix suggested entry. *NOTE: OIH is trading slightly above it's 50-ma (Bullish). So my outlook is that a near term rally in the Euro (weakness in dollar), seasonally favorable chart for crude oil and the technical support levels for the keeping my bias to the upside. I've suggested setting a STOP on PDE @ $28. I continue to see oil rallying to $90.

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