Tuesday, October 25, 2011
Crude Oil update
About 10 days ago, i mentioned in the email that I am watching oil for a good trade emerging in it. Winter is near, and its the time of year for demand to increase. I was looking at the chart of oil last weekend, and it was already breaking out; I was lazy and tired late at night, to discuss it at that time. I apologize, because oil made a strong move over 4% on monday, oct 24th, to confirm the breakout. It was a clear buy day, if you had been watching the news or looking at oil chart. My first target on oil is 97 area, which will be reached by year end, if not in near future. Crude oil has had a good degree of correlation to ES in last 3 months; so if crude move is any indication, we are looking for break higher in ES for tuesday NY session. But i am also keeping in mind the possiblity for this week, given by the previous ES chart posted.
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