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Mood!

Tuesday, February 7, 2012

Crude oil..still consolidating or forming a top?

Crude oil still in a channel...trending lower, BUT is it a bull flag or topping?

Daily chart



Personally it looks like after the bottom formed in Oct 11, which showed bullish divergence between Price and RSI, we had a STRONG LEG up  to the November high, and since then it looks like it is in consolidation for at LEAST one more leg higher.

A significant break of the December lows would change that

STRATEGY if bullish : buy on weakness, or wait for a break above 101

Weekly chart


RSI seems to have found support, only negative is MACD may be about to cross down, BUT lagging indicator and many time it approaches the signal and turns up.


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