Monday, April 21, 2008

Oil Still Rallying

From the AP

Oil prices spiked to a record $117.40 a barrel after a Japanese oil tanker was hit by a rocket near Yemen and militants in Nigeria claimed two attacks on pipelines.

The 150,000-ton tanker Takayama was attacked about 270 miles off the east coast Yemen coast in the Gulf of Aden while it was heading for Saudi Arabia, its Japanese operator, Nippon Yusen K.K., said in a statement.

None of the ship's 23 crew members was injured. Hundreds of gallons of fuel leaked before a 1-inch hole in the tanker's stern was repaired, the company said.

Kyodo News agency reported that the Japanese tanker was fired on by a rocket launcher from a small boat.

Light, sweet crude for May delivery reached $117.40 a barrel but fell back to $116.88 by midday in Europe, up 19 cents from Friday's closing price.

On the daily chart, notice the following:

-- All the SMAs are moving higher

-- The shorter SMAs are above the longer SMAs

-- Prices are above all the SMAs

-- Prices have rallied and consolidated which is a very health bull market formation

On the weekly chart, notice we've had an incredibly strong rally. Prices have been rising for the last year. As they have risen they have consolidated their gains which allows some traders to take profits and others to get in. This is a bull market chart.