From a technical chart perspective, crude oil prices remain firmly entrenched in a four-month-old downtrend from the early-July high. Serious technical chart damage continues to be inflicted as price action the past month has seen nearby Nymex crude oil futures drop below key technical and psychological support levels of $80, $70 and just this week below $60 a barrel.
The next downside price objective for the bears is to push nearby crude oil futures prices below major psychological support at $50 a barrel. Importantly, there are no early technical clues to suggest the downtrend in crude oil prices is close to ending.
P.S. Will you be there when Cramer makes his next move?
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Oil Some New Dents in RIG's Armor 11/5/2008 11:40 AM EST The company posted EPS of $3.44 on total sales of $3.19 billion.
Oil RIG Preview: How's Overall Demand? 11/4/2008 1:17 PM EST Current projections call for the company to produce EPS of $3.49 on total sales of $3.14 billion.
Jim Wyckoff is a senior market analyst for TradingEducation.com a free educational Web site. In addition, Wyckoff writes a blog offering current market commentaries every morning on TraderBlogs.com. Under no circumstances does the information in this column represent a recommendation to buy or sell stocks. Wyckoff appreciates your feedback; click here to send him an email.
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