Thursday, February 12, 2009

Thursday Oil Market Roundup

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Not much has changed since last week's update. The market is still technically oversold, as indicated by the extreme MACD and RSI readings. All the SMAs are still moving lower, and the shorter SMAs are still below the longer SMAs. Prices are caught up with the 10 week SMA. In addition, we can also see the triangle consolidation pattern forming.

The main point with the daily chart is the triangle consolidation pattern and the tight price/SMA picture that is forming. This indicates traders aren't convinced of a move in either direction right now. My guess is we've seen the lowest oil prices we're going to see on this chart, especially considering the underlying supply situation: