Tuesday, December 13, 2011

WTI Oil At $100...Where Next?

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WTI Oil rose today on Iran saber rattling and is currently trading around $100 a barrel.
Below are three charts a weekly and daily of WTI Crude Oil and another of oil against TLT.
This is a link to past WTIC/TLT chart

ITZ on an 8 hour chart had been looking for a Cup & Handle formation...the handle has taken to much time and the chart has now phased into a Bullish Pennant on the daily. The weekly formation is in a Downtrend Channel. Bottom line.....will crude breakout or breakdown in coming days?
A breakout will send oil to $113, but lower could see $90 near term and possibly the low $70s in coming weeks.

Click On Chart To Expand Image

The $WTIC:TLT chart is setting up an Ascending Triangle...but more importantly is the $Gold:$WTIC Ratio dropping below 17...click on this link for previous chart

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