Oil Markets: $55 Proving To Be A Tough Level

Oil Markets: Ten Percent Decline Within Statistical Possibility In Context Of Ongoing Bull Market

The fervor continues to rise in the news media, as oil prices remain high. But the market is telling a different story.

The charts are clearly forecasting a pull back in crude futures with the short term target being somewhere between 46.35 and 50.35. That's where the 20 and 50 day moving averages are as of the close on 10-19-04.

To be sure, until proven otherwise, the oil market remains in a long term bull market. Only if prices fall significantly below $40 per barrel will this scenario change.

The Philadelphia Oil Service Index (OSX) remained below 120, a key short term support level. For more details on trading the energy sector visit our energy timing page, featuring our highly effective OIH timing model and our Top Ten Energy Stock List.

The Amex Oil Index (XOI) broke below 700. That is a major short tem break. For immediate analysis, including stock picks, and the latest in technical analysis of the entire energy complex, our subscriber section has a full complement of recommendations in oil service and the rest of the energy complex.

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