Thursday, March 5, 2009

Thursday Oil Market Round-Up

Click on all charts for a larger image

On the weekly chart notice that prices have been in a triangle consolidation pattern for the last three months. Also note the MACD is rising and has given a clear buy signal. Also note the RSI is rising. Prices are above the 10 week SMA. There are two more areas of upside resistance that could keep prices from moving higher -- the upper line of the triangle and the 20 week SMA.

There's been a huge divergence between prices and the MACD over the last three months. Also note the RSI was hovering between 30 and 50 for most of that time but has posted some gains over the last fewweeks. From a price perspective, notice that prices were rebuffed at the 45 level recently but have since rebounded and are trying to move through the level again.

Bottom line: this chart is looking pretty good from a bullish perspective.