Moment of Truth for Oil

Moment of Truth for Oil
By Mike Paulenoff,

The moment of truth for nearby crude oil prices, as they press against the 20 Day MA at 39.29, which also represents the mid-point of the Bollinger Bands-- and usually supports the price structure on a pullback IF (and only IF) the dominant trend direction is UP. Right now, the technical work shows a possible upside reversal off of the 2/12 low at $33.55, which climbed to 45.30 on 2/26 prior to turning lower. This AM's pullback low at $39.44 so far has preserved the 20 DMA, but as of yet, no meaningful upside reversal has occurred. This bears watching for ETF traders interested in the US Oil Fund ETF (NYSE: USO). MJP 3/03/09 12:05 PM ET (39.96... USO: 24.40)

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