Thursday, January 29, 2009

Click on all images for a larger image:



Notice the following on the weekly chart:

-- Prices are forming a triangle consolidation pattern

-- All the SMAs are moving lower

-- The shorter SMAs are below the longer SMAs

-- Prices are still below all the SMAs, although prices are running into resistance at the 10 week SMA level

-- The MACD is oversold

-- The RSI is oversold



Notice the following on the daily chart:

-- Prices have been running into upside resistance from the SMAs for the last 6 months

-- The 10 and 20 day SMAs are moving sideways but are still below the 50 day SMA

-- The 50 day SMA is still moving down

-- The MACD has been rising for the last three months

-- The RSI is OK but not great

Bottom line: the monthly chart is lining up for a rally. The daily chart's SMA/price picture is good, but the MACD is a concern at current levels. In addition, the fundamentals for oil are weak right now -- demand is low because of the recession and stockpiles are high.