Thursday, July 23, 2009

Thursday Oil Market Round-Up

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The overall trend is still up but there are important caveats to that statement. First, prices are literally hanging on to the trend line. Secondly, prices have fallen from above the 50 day EMA to the 10 day EMA and are now running into resistance at the 50 day EMA. In addition, prices may be consolidating in a bear market flag pattern (which would be confirmed if the MACD gives a sell signal). Bottom line, this is a conflicted chart.

The daily chart only compounds the confusion. First, prices and the EMAs are in a tight range indicating a lack of overall direction. While the MACD has given a buy signal prices are currently in a bear market pennant pattern.

Short version -- this is a very conflicted market right now.