Thursday, March 19, 2009

Thursday Oil Market Round-Up

The weekly chart shows that oil has clearly broken through the upper trendline of the triangle consolidation pattern hat started in the 4th quarter of 2008. Also note the MACD gave a buy signal in late January and the RSI has been rising for several months. Prices are also above the 10 and 20 week SMA and the 10 week SMA has turned positive.

The most important development is the movement of prices and the SMAs into a more bullish configuration. Note that prices are now above all the SMAs, the shorter SMAs are now above the longer SMAs and all the SMAs are rising. This is very bullish. Also note we have gains in the RSI and a rising MACD.

Bottom line: this is a bullish chart.