Crude Oil Breaking Higher

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ITZ noted recently that WTI Crude Oil was set to breakout and head to $116.....READ
Back in November 2011 the chart below was posted, the Gold/Oil Ratio versus Proshares Ultra Crude Oil UCO. The GO Ratio has been oscillating around the 17 level as both oil & gold rise in tandem. ITZ had called for $110 WTI Crude Oil by February 2011 ...READ
Recent geopolitical events are the catalyst to push crude higher... Iran Halts Oil Exports to Britain and France...READ

Past ITZ Posts

OIL: Time To Take Profits?

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Taking some money off the table on WTI Crude Oil. The spread between Brent & West Texas has come in to around $13. Also WTI was in backwardation has now gone into contango.

From the May 2011 high around $115 to the October lows $75 give a Fibonacci Retracement 61.8% of $99.60.
Those using Proshares Ultra Crude Oil (UCO) may consider taking some money off the table around $42 a share and keep a tight trailing stop. Not to say WTI couldn't rise further....but it is getting toppy and at some point will affect consumer spending. Itz is holding back on taking a short position via SCO, but is set to pull the trigger on this trade.

Why oil is a tough market to sell into right now, with Stephen Schork, editor of the Schork Report.

click on chart to expand image

Past ITZ Posts

OIL UPDATE

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Today's coordinated move by IEA looks as if its a politically and ill timed move.
Oil is tumbling after Federal Reserve Chairman Ben Bernanke warned that the U.S. economy is weaker than previously thought and the International Energy Agency said it was releasing 60 million barrels of oil to make up for a loss of Libyan exports.
The IEA announcement further evidence that the rebellion in the oil-rich country has tightened global supplies.
Itz suggested several days ago too take a half-position on the Proshares Ultra Crude Oil ETF (UCO) @ $42.50. Also stating to watch for a test of the lower end of the channel ($90). For now lets give this a few days to see how it plays out before adding to position, consensus is calling for oil to head to $85, possibly. UCO currently trading at $38.92.
Oil Futures prices & charts link

Past ITZ Posts Click Here

A long time oil stock buyer weighs in on oil falling on the U.S. tapping its vast emergency petroleum stockpile, with Jerry Castellini, CastleArk Management president.

Is the SPR oil release a dangerous game? A look at what's behind today's drop in oil and its impact on the market, with the Mark Fisher, MBF Clearing Corp. founder/CEO.

The American Petroleum Institute says the SPR oil release is ill-timed and makes little sense. Insight with, Jack Gerard, American Petroleum Institute president/CEO.