Oil Spike Fails to Hurdle Rally Peak - Mid-Day Minute for Wed August 13th 2008

Aug 13

Oil Spike Fails to Hurdle Rally Peak

by Mike Paulenoff, Wed August 13th, 2008

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Oil Spike Fails to Hurdle Rally Peak
By Mike Paulenoff, www.MPTrader.com

Very interesting situation developing in nearby crude. Let's notice that the post DOE data spike propelled prices to $115.69 (so far), which hurdled the August resistance line at $114.80, benefiting our earlier ProShares Ultra-Long Oil & Gas ETF (AMEX: DIG) position. But it failed to hurdle the prior rally peak at $115.95 established yesterday. This means that today's action fits "inside" of yesterday's range, which to me represents neutral action within the otherwise bear trend if oil prices are unable to break to the upside above $115.95. As the day progresses, if oil prices do not appear to be in a position to hurdle $115.95, I will be expecting a very nasty bout of (disappointed) long liquidation in the aftermath of bullish news -- that drives nearby oil prices to new lows towards $110.00.

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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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