Finally, the weekly oil SEQ count is about to make the 13 and bottom. The daily count confirms that. The evidence is also confirmed by a technical breakout of VLO to the upside. The CRB is in a similar mode and we can expect a general upturn of commodities in Q1. In practical terms, the whole idea gets a supporting spin by the government aid programs around the world, which will all demand commodities to accomplish the projects. Upside target is 38 - 50% of the 107 move back, hence we can expect a 80 target. The fact that the once very bullish analysts from Goldman and Mer have turned bearish is a little gimmick effect, but not less of a help, as it completes the picture.
Thursday, December 18, 2008
Oil makes finally the bottom around this weekend
Finally, the weekly oil SEQ count is about to make the 13 and bottom. The daily count confirms that. The evidence is also confirmed by a technical breakout of VLO to the upside. The CRB is in a similar mode and we can expect a general upturn of commodities in Q1. In practical terms, the whole idea gets a supporting spin by the government aid programs around the world, which will all demand commodities to accomplish the projects. Upside target is 38 - 50% of the 107 move back, hence we can expect a 80 target. The fact that the once very bullish analysts from Goldman and Mer have turned bearish is a little gimmick effect, but not less of a help, as it completes the picture.
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