Notice the following on the weekly chart:
-- Prices are forming a triangle consolidation pattern
-- All the SMAs are moving lower
-- The shorter SMAs are below the longer SMAs
-- Prices are still below all the SMAs, although prices are running into resistance at the 10 week SMA level
-- The MACD is oversold
-- The RSI is oversold
Notice the following on the daily chart:
-- Prices have been running into upside resistance from the SMAs for the last 6 months
-- The 10 and 20 day SMAs are moving sideways but are still below the 50 day SMA
-- The 50 day SMA is still moving down
-- The MACD has been rising for the last three months
-- The RSI is OK but not great
Bottom line: the monthly chart is lining up for a rally. The daily chart's SMA/price picture is good, but the MACD is a concern at current levels. In addition, the fundamentals for oil are weak right now -- demand is low because of the recession and stockpiles are high.
