-- Oil broke the 1+ year upward sloping trend line a few weeks ago. This indicates the major rally that has been moving oil higher is over.
-- The 10 and 20 week SMAs are both moving lower
-- The 10 week SMA crossed below the 20 week SMA
-- The 10 week SMA is about to cross below the 50 week SMA
-- Prices are below all the SMAs
-- Prices are using the 50 week SMA as upward resistance rather than support
On the daily chart notice the following:
-- The 10, 20 and 50 day SMAs are moving lower
-- The shorter SMAs are below the longer SMAs
-- Prices have moved through the 10 and 20 week SMA. However, this is due to a huge market problem caused by the bail-out issue. The assumption was if the bail-out goes through the US economy will stabilize which will increase oil demand. Now it loos as though traders are re-thinking that idea.
-- Prices are still using the downward sloping trend line as resistance.
I'm on Linked In and Twitter (@captivelawyer). Silver Oz's Linked In name is @silver_oz. NDD is a fossil and may be reached by etching a picture in stone on the wall of a cave.
The Bonddad Economic History Project
At the beginning of 2012, I decided to start looking at the actual, statistical history of the US economy starting in 1950. The reason is simple: to find out what really happened. So, when you see title of a post that begins with a year such as 1957, followed by "employment" or "Fed policy: you know what it's for. You can also access the information by typing in BE for Bonddad econ and a year to find information on a particular year.
Here is a link to pages that contain links to all the posts on the years listed.