Will Crude Oil hit $100 per barrel?
In today’s Chart of the Day, we’re going to look at the
TradingMarkets
Momentum 5 List.
This list contains the five strongest futures contracts as measured by our
proprietary relative strength model.
Top of the list for 07/14/06 was the September Light Sweet Crude Oil contract
(CLU6) that trades on NYMEX.
Crude Oil surged to a new all-time high today as the situation
in the Middle East appeared far from being resolved. If you look closely at the
two indicators below the price chart you’ll see that the 5-day RSI isn’t
confirming the price breakout to new highs — a potential warning sign. However,
the ADX is showing a strong trend is in place. Keep an eye on these indicators
next week for clues as to whether Crude Oil will be able to sustain its upward
momentum or not.
Don’t forget to vote in this week’s poll whether you think Crude Oil will hit
$100 per barrel.
In the days to come we’ll show you more of these examples on both the long and
short side. I’ve enjoyed showing you this Chart of the Day, please feel free to
email me at editor@tradingmarkets.com
if you have any questions or comments.
Ashton Dorkins
Editor-in-Chief
Reminder: We are in no way recommending the purchase or short sale of these
stocks. This article is intended for education purposes only. Trading should be based on your own understanding of market conditions,
price patterns and risk; our information is designed to contribute to your
understanding. Controlling risk through the use of protective stops is critical.