Thursday, June 18, 2009
Given slack demand tied to the global recession, some have questioned whether recent gains in crude oil are indeed justified. I am one of the biggest commodity bulls out there (I had been recommending buying oil in January and February), but I do think crude oil is a bit toppy, and the charts are showing a potentially bearish crossover right now that could be indicating a near-term correction.
NYMEX July crude oil futures have been struggling to move above $70 a barrel, and I think a correction could take the market down to $65, the 200-day moving average, or lower, to the 50-day moving average at $61. I see that as a good value area to buy in line with a resumption of another leg up in July and August. (more)