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Oil crash?

Started by pkamm, 10/06/2005 11:25AM
Posted 10/06/2005 11:25AM Opening Post
Noticing now after two BIG down days, following a big months-long blow-off rally, the energy sector index appears as though it may have just formed a classic double-top. Opinions?
Posted 10/21/2005 03:58AM #1
well the energy index has fallen pretty far pretty fast and is now well oversold on a short-term basis where it was overbought just a short time ago.

The energy-sector SPDR XLE is now near the bottom of its 3-year uptrend channel. Here we see if the recent pullback was just a correction or the start of a major downward trend. Today it tested support (previous resistance) at about 45. If one is betting on a renewed rally in oil and energy, this may mark a good entry point. Conversely if this is the start of a major bear move for oil then this fact should reveal itself very quickly.

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