1/13/2009

How Low Will Oil Go?

I don't know why I ask this question. I guess I ask because it's the question most people ask me. My answer is always the same, I have no idea.

All I can say is the trend is still down. It will remain down until it is up.

Daily Crude Oil Chart
This is a very strange business, spent 6 hours looking at charts, made one trade, held the position for about a minute, and that was it for the day.

5 Minute Crude Oil Chart

1 Minute Crude Oil Chart

4 comments:

Miguel Andujar said...

I think the key will be the 35 dollars, it has hit 3 times already this price, and it bounce back, if it breaks it, we will see it collapse to the mid 20.

Just my 2 cents.

Solfest said...

Miguel, sounds logical.

The March contract is trading at $44.00, so what happens when February expires?

Miguel andujar said...

In my opinion like you said once this month expire we are going to see a big drop on the month of March contract, since all the sellers roll over, matter fact the "roll over" it will be great if you have a short position for February to roll over to March so you could take advatage of the big contango that we have right now of almost 6 dollars.

By the way I have one question do you use Market Profile and if you do can you give a good book or tutorial about this infamous tool

Solfest said...

Miguel if I could predict the price of oil I wouldn't have to work so hard day trading.

I don't use Market Profile.