Market Analysis for Nov 16th, 2005
What a difference a day makes. In the past few hours,
since the energy stats were released, prices have
rebounded from new reaction lows at $56.70, to $58.25.
In the next 70 minutes, if crude prices continue to rally
and close above $58.40, then today's action will be
considered a key upside reversal-- which IS a signal
that the decline from the Katrina high at $70.85 has
hit its first significant low within the beginning of a
base building period. Inability of crude to close above
$58.40 will leave us with a weaker reversal signal, one
that usually ushers-in a recovery rally ahead of another
downleg. In any case, right now it appears that crude has
found some sort of meaningful near term low at $56.70.
Any rally effort will hit resistance at the 200 DMA, now
at $59.21. MJP 11/16/05 1:55 PM ET ($58.20)
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