Tuesday, April 6, 2010

Crude Oil Approaching $90

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Oil...crude..Buy..going to $100...well just turn on the financial programs and what is the topic of the day? Yep oil! All of a sudden as it approaches $90 per barrel its a buy. Hmmm? Where were they back a  few months ago when it was testing $70?  Back on December 29, 2009 Itz Stocks Chartz pointed to a 4 month lag chart & stated that oil would break out @ $82 and run up towards $95 by April 2010... >>LINK
Followed up in February with a reiteration to remain bullish & suggested buying Suncor Energy @ $29 >>LINK

Just a follow up to the $WTIC/Gold 4-month lagging chart:

Here is a Gold: CrudeOil Ratio chart. Note the 13:1 ratio level, which has signaled a short term sell for crude over the last 10 months. Will that be the case @ $90? Or will support give way and oil trend to $95 or $100? Keep an eye on this in coming days and weeks.

The Suncor Energy (SU) chart hit a pause Tuesday, it should run to $37 on $90 crude. Again as in previous posts, consider selling an out of the money covered call, May strike.

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