Thursday, January 31, 2013

Oil Creeping Higher -- At What Price Does It Start to Choke Growth?

The daily oil chart shows that oil has been in a rally since early December.  Currently, prices are above the 200 day EMA.  All three shorter EMAs have moved through the 200 day EMA, and all shorter EMAs are rising.  Volume is supportive.  While the CMF is very bullish, the MACD is weakening a bit.

A move through the 98 price level makes 100 the next logical price target.

So -- at what price does oil start to choke off recovery?

Brent just crossed the 115 level, which could slow growth in the EU.