Thursday, February 4, 2010

Thursday Oil Market Round-Up

Notice that oil prices are consolidating in a triangle pattern.

A.) Trend breaks can be very tricky. Some traders are very strict regarding when a trend break is a real trend break -- the slightest penetration of a trend line is a break. Others are more lenient. There is no correct method -- it's as much an issue of feel and interpretation as fact. Also note that commodities were dropping at point (A) as a result of China raising interest rates. In other words, there was a fundamental reason for the drop in conjunction with a technical reason.