Mike's Mid Day Minute is available to members on Monday, Wednesday & Friday evenings, with one article per week available to non-members. Members please login and see "Mike's Mid Day Minute" in the navigation menu towards the top of the page.

Oil Reverses to the Downside


Thursday January 27th, 2011
Oil Reverses to the Downside
by Mike Paulenoff www.MPTrader.com

Let's notice that after rallying strongly yesterday and recovering to test resistance around $88.00, crude oil prices have reversed to the downside again and have pressed to a new reaction low at $85.63.

Yesterday's upside failure confirms the importance of the $87.80-$88.00 resistance plateau, and today's resumption of weakness provides further technical evidence that oil prices -- and the U.S. Oil Trust ETF (USO) -- are in the grasp of a correction off of the Dec-Jan top formation. The correction projects to an $82.00-$80.00 near-term target in crude, with downside "overshoot" into the area of the January 2009 trendline, now at $80.66.

Take Advantage Of Our Free
7-Day Trial, $7/Month Offer!
  • Action-Oriented Trade Set-Ups in Stocks & ETFs
  • Macro Analysis of the Broader Markets
  • Detailed Technical Guidance for each Trading Idea
  • Live Interaction w/ Mike & Our Member Community
  • And Much, Much More!
Join Now! - Special Offer!
Veteran Wall Street analyst and financial author, Mike provides detailed and timely analysis and trade set-ups on a range of markets. Read more...

Have Mike's “Out Front” morning analysis delivered FREE to your email inbox twice weekly!