Near-Term Peak in Crude Oil - Mid-Day Minute for Mon July 7th 2008

Jul 07

Near-Term Peak in Crude Oil

by Mike Paulenoff, Mon July 7th, 2008

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Near-Term Peak in Crude Oil
By Mike Paulenoff, www.MPTrader.com

As we noted to subscribers last Thursday, classic Bollinger Band oil price behavior 99.9% of the time reverses from a puncture of either side of the band. Today's decline in crude oil and its ETF the US Oil Fund (AMEX: USO) confirms a near-term peak last week against the top Bollinger Band line, as well as the initiation of a corrective period that has an initial target zone of $137.75 along the sharply rising DMA. A sustained break of $137.75 should trigger additional weakness that points to a test of critical support at $132.00.

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Mike Paulenoff is author of www.MPTrader.com, a real-time diary of his technical analysis & trade alerts on ETFs for precious metals, energy, currencies, and an array of equity indices and sectors, including international markets, plus key ETF component stocks in sectors like technology, mining, and banking. Sign up for a Free 15-day Trial!

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