Focus: Oil, Gold, Silver
Updated @ Thursday, 20 November 2008 21:05:17 GMT
Technical Outlook
NYMEX Crude Oil Breaks Key Trendline, Move to $46 Likely
The NYMEX Crude Oil contract has now "officially" broken below its 10-year uptrend channel, with today's tumble taking it below the psychologically significant $50 mark. Next targets are shaky due to the difficulty in using historical futures prices, but previous spike-lows seen in late 2005 come in at 46.20. At the minimum, we are looking for a move to test said mark, but a much firmer price floor can be seen at the psychologically significant $40.00 mark. The break of the long-standing trendline tells us that the secular uptrend is now over, but it does not necessarily mean that a long-term downtrend has begun. Instead, we could simply see a period of prolonged consolidation.
Fundamental Outlook
Updated @ Thursday, 20 November 2008 22:01:23 GMT
Crude Oil Breaks the $50 Mark - What's Next?
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