Sunday, May 03, 2009

Crude Oil

Crude Oil Weekly Chart

It gave me a buy signal. But it is still trap within the 48-55 range, now entering week 6. A break of 55 will confirm my buy signal. We can see that it drop from 150 to 35 without any bounce. How high can it go? If the bounce happens, I expect that the oil and gas sector will become more hot. Anyhow, if you have a direct exposure to the US market, I suggest that you look into USO, ERX or DXO.

Disclosure: I'm long in DXO.

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