Today we are looking at a January crude oil contract, but this can be any of the other contract months.
We've looked at this market before and were expecting it to go higher. It did not, however, fulfill that promise and with a red weekly “triangle” in place, it appears as though this market is heading down, but is it?
I’ve wanted to do an update on the crude oil market for a few days now, but unfortunately time got away from me. In my new video on crude oil, I update some of the thoughts I had before, but also some important elements that are still in play and could push this market significantly higher.
In this new video I outline the key support zone that I see and also highlight some other technical elements could come into play to push this market higher.
As always our MarketClub videos are free to watch and there is no need to register. Please leave us a comment on the blog and let us know what you think.
All the best,
Adam Hewison
President, INO.com
Co-creator, MarketClub
A Quick Update on the Crude Oil Market
I was just looking at the charts and they are beginning to look very, very bullish. The formation I show you in today's video is a classic continuation pattern to the upside. This pattern also confirms a Fibonacci target number we are looking at.
This video is short and to the point and I think it will get you thinking about this energy market.
The big question is if crude oil is headed higher, how much of a price increase can the US economy afford and withstand?
Here is a raw commodity that is used by everyone and the US has no control over it. This key commodity to commerce just happens to be in areas that are hostile to the US. If we see a hiccup in the supply chain that changes this market dynamic, even for a short time period, we could see oil move back to the $100/barrel range in a heartbeat.
How will this affect the US equity markets? If crude oil heads back to the $95-$100 range, I expect that the economy will take a hit and that will send the major indices south. In this short video, which I made a few days ago, I share with you the potential target zones that we could see in the next 6 to 12 months in crude oil. Continue reading "Can the U.S. Economy Survive $100 Crude Oil?"
I've had a number of requests from MarketClub members to produce another video on crude oil. Part of that may have come from the crude oil alert that we put on our blog on October 12.
What is interesting about crude oil is the fact that seasonally, it should be going down. However, the market appears to be doing just the opposite. We have written about this before and when something is supposed to happen and the opposite occurs, it's time to pay attention.
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