Wednesday, October 28, 2009

Oil in ‘Uptrend’ as Prices Remain Above $70: Technical Analysis

(Bloomberg) -- Crude oil remains in an uptrend even if the market unwinds gains made this month and falls back toward $70 a barrel, according to an analysis of price charts by National Australia Bank Ltd. Oil traded below $80 a barrel for a third day today as traders exited bets on higher prices amid a stronger dollar and declining stock markets. While a further decline is possible, a reversal of the four-week rally “is not cut and dried yet,” said Sydney-based technical analyst, Gordon Manning.

“The tree was shaken but serious damage hasn’t been done yet,” he said in a telephone interview. “The pattern is still going to be very positive while we’re above $70. If oil comes back to $70 it’s still going to look fine.”

http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aX_PBSYrEsFo

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