Expect a Quick Bounce from Crude Oil?
Crude Oil
XLE
USO
Crude oil ended the last session with a hammer candlestick near the 200 simple moving average. $110 appears to be a support level, if you look back at April/May this year. The last few sessions also saw the crude unable to close below $110.
Energy Select Sector SPDR (AMEX:XLE) is also finding support at $70. See the the longer tail of several candlesticks in recent sessions near $70. If it breaks and close below $70, then all bets are off. Likewise, United States Oil Fund LP (AMEX:USO) at the round number $90 and approaching the 200 simple moving average.
So don't be surprised you see a bounce soon in the energy sector. But the general trend is still down and the bounce should be short-lived.
Earnings season is rounding up soon and there is no major economic data this week.
Mon:
Notable earnings: BHP, LOW, TSL
Tue: Building Permits, Core PPI, Housing Starts
Notable earnings: ADI, HD, HPQ, MDT, NVTL, SOL, TGT
Wed:
Notable earnings: BYI, BJ, EV, GYMB, LTD, ROST, PVH, STP
Thurs: Initial Claims, Leading Indicators, Phil Fed
Notable earnings: ARO, BKS, BEBE, BCSI, CYBX, DKS, FRO, GME, GPS, ZUMZ, PLCE
Fri: Fed Chairman Bernanke to speak about financial stability
XLE
USO
Crude oil ended the last session with a hammer candlestick near the 200 simple moving average. $110 appears to be a support level, if you look back at April/May this year. The last few sessions also saw the crude unable to close below $110.Energy Select Sector SPDR (AMEX:XLE) is also finding support at $70. See the the longer tail of several candlesticks in recent sessions near $70. If it breaks and close below $70, then all bets are off. Likewise, United States Oil Fund LP (AMEX:USO) at the round number $90 and approaching the 200 simple moving average.
So don't be surprised you see a bounce soon in the energy sector. But the general trend is still down and the bounce should be short-lived.
Earnings season is rounding up soon and there is no major economic data this week.
Mon:
Notable earnings: BHP, LOW, TSL
Tue: Building Permits, Core PPI, Housing Starts
Notable earnings: ADI, HD, HPQ, MDT, NVTL, SOL, TGT
Wed:
Notable earnings: BYI, BJ, EV, GYMB, LTD, ROST, PVH, STP
Thurs: Initial Claims, Leading Indicators, Phil Fed
Notable earnings: ARO, BKS, BEBE, BCSI, CYBX, DKS, FRO, GME, GPS, ZUMZ, PLCE
Fri: Fed Chairman Bernanke to speak about financial stability
posted by Simply Options Trader at 4:17 PM PERMALINK
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