CRUDE OIL

CRUDE OIL ABOUT TO PLUNGE?

The price of crude oil is sitting on a critical support level at +-87.50...violation will open up the flood gates! First stop would be the June 29 low at 77.35 and if this level is violated we could be looking at a test of the January 2009 low at 33.10. Right now CRUDE is the weakest of the Global Seven, see www.investrac.com/global-seven and may continue to outperform on the downside.

CRUDE OIL/CRB INDEX RATIO TO FALL

The CRUDE OIL/CRB INDEX ratio is going to go lower which means that not only is the CRUDE OIL price going lower but that it is going to fall faster and further than commodities in general. The daily chart above shows that the ratio (closed 0.2992) in recovering 50 percent of its decline failed to get up to its 200 day moving average...and now it has plunged through support of the minor uptrend and its tandem moving average indicating that it is going lower.

CRUDE OIL PRICED IN EUR AT JUNCTURE

The EURO price of CRUDE OIL is at a very interesting juncture because as you can see in the chart above, price and its moving averages have converged which usually precedes a sharp move...in addition it seems that price, after being turned back by resistance above +-EUR77, it has held the EUR75 support level.

COMMODITIES SETTING THE PACE

DJIA TO WEAKEN AGAINST CRUDE OIL

CRUDE OIL/USD INDEX RATIO

CRUDE OIL HAS GIVEN SHORT TERM SELL SIGNAL