The price of oil reached a short term high of $113.92 per barrel on April 29th, 2011, and then declined to $76.78 on October 4th, 2011. What is very important about this chart is that if the price of oil closed above $113.92 per barrel, then it will have completed a “cup pattern” with a measured move to $151.06 per barrel. I consider cup patterns to be very highly reliable, and very predictable. On Friday the price of wholesale gasoline closed at $3.15 per gallon. This is a ratio of just under 35 to 1 between the price of oil and gasoline. Applying that ratio to $150 per barrel oil and you get an estimated wholesale gasoline of approximately $4.28 per gallon. That would most likely put the price at the pump close to….
Tag Archive for XOI
Market Commentary – August 16th, 2011
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A Few Thoughts Before the Open: As I write this, pre-market futures are sharply lower in the U.S. due to news form Europe that economic growth is slowing on that side of the Atlantic. Not sure where the futures will…
Market Commentary – August 15th, 2011
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A Few Thoughts After the Close: The overall market moved sharply higher yesterday in a relatively broad based move that saw basically every sector index I track move higher on the day. The strongest sectors were the N.A. Telecom, Banking, …
Market Commentary – August 11th, 2011
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A Few More Thoughts Before the Open: I’ve got a few more minutes in the office this morning and wanted to update the support and resistance points on a couple of the sector indices I have talked about recently. M.S.…
Market Commentary – August 5th, 2011
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A Few Thoughts Before the Open: With yesterday’s brutal move lower in the markets I am going to sit this morning out from a trading perspective; not because I am afraid of the market moving lower, but because I am…