Best Forecaster on OIL GS...

Do you see it tanking further?

I was thinking of going long on oil What do you see as the support and entry zone or a break from here?

Closed out of my euro trade was thinking of getting long on oil at 83.80

from futures magazin (email) Crude behavior Last week, June 2010 crude oil opened the week at $85.62 and closed the week at $85.63. Last week BofA/Merrill Lynch (companies where execs should be facing prison time) put their two cents into the price of oil by stating “crude will be trading in the $90s by year’s end.” Say it isn’t so. The Qatar oil minister said last week, “there are large supplies of crude. Investors are causing the higher prices in crude.” This looks like 2008 all over again. I even saw the term “peak oil” creep into the media again last week. My how we Americans forget. How many of you recall spring of 2008? Let’s take a look. April 2008 crude opened the month at $101.57 and closed the month at $113.46, with the US Dollar Index opening April 2008 at 72.230 and closing the month at 72.720. We also saw every newspaper, magazine, and business show talking about “peak oil,” showing us approximately when the earth will run out of oil, which was scary. Can you justify a run up in oil any better? And yes we ran up, all the way to $147. And then someone in congress yelled “speculation” and the show was over. If anyone out there can explain to me how we went from $147 to less than $40 a barrel in six months, I would love to hear it. While demand did drop, did it drop that much to explain a more than $100 drop in a barrel? Doubt it. Maybe it was to take the heat off of those speculators? Who knows? I loved 2008. It was a great year for trend followers. But let’s look at today and move forward. The weekly chart below definitely favors higher prices moving forward, especially with the commercials posturing for higher prices. Now I would not discount a correction coming down to $80, but make no mistake about it, if BofA/Merrill Lynch says $90s, we will have $90s. I can’t wait to hear what Goldman Sachs has to say. In the summer, oil demand does rise (except of course 2008), but oil companies also have to change to the summer blend in the northern states so the higher RBOB prices are to be expected. See the RBOB weekly chart below. If you manage to play this market correctly and get on the right side of the trade like TrendTrader did, (see weekly charts below) I am sure $4 per gallon gasoline will not hurt as much. Have a prosperous trading week. For a free report on using the COT report, email me at Gary@CRBTrader.com with COT Report in the subject line and please include your name and telephone number. Over the past 12-15 weeks, Mondays have not been good to U.S. dollar bulls. Watching last week’s activity, the dollar may have another rough Monday.

This is the current support but a break from here spells $70 plus oil

http://stockcharts.com/h-sc/ui?s=$wtic

Do you see it tanking further?

I do but first a bounce from around these levels.......maybe even a run to the highs if the buck tanks, the buck is acting weak the last couple of days.....


GS.