Daily US Market Comments 17 October 2006 by MastersoEquity.com
FUNDAMENTALS
Oil prices rebounded yesterday taking the bulk of the energy companies up along with it. This gave an overall boost to the market the way we saw the markets behave the last time oil rebounded late last month. Even though oil prices have rebounded slightly, it is still at a very low level and does not send a wave of panic across the markets. This have instead given some much needed boost to the already beat energy sector. We will have to see if further actions from OPEC does indeed enable oil prices to stage a rally from this point onwards... if it does, the markets could be in for a little correction.
TECHNICALS
Oil prices seemed to have found a short term support around the $60 region. This rebound yesterday have managed to bring it out of its short term oversold condition which could help oil prices go further down. Looking at the formation, however, we see oil prices forming a little W bottom which could spell more upside to come should oil prices continue to climb today. This formation is considerbly stronger than when oil prices staged a rebound late last month. This is a critical juncture for oil prices... the movement of these few days could decide where oil prices might move towards at least in the short term. It just take one more day of rise to put oil prices in line for a W bottom rebound and one day of fall today to put it back down into its declining channel.
Oil prices and the coming Q3 earnings season could significantly affect the coming market direction.
Our Subscribers Continue To Make Over 40% Profit Yesterday on HAIN! Don't Miss Out On Our Next Trading Signal!
Oil prices rebounded yesterday taking the bulk of the energy companies up along with it. This gave an overall boost to the market the way we saw the markets behave the last time oil rebounded late last month. Even though oil prices have rebounded slightly, it is still at a very low level and does not send a wave of panic across the markets. This have instead given some much needed boost to the already beat energy sector. We will have to see if further actions from OPEC does indeed enable oil prices to stage a rally from this point onwards... if it does, the markets could be in for a little correction.
TECHNICALS
Oil prices seemed to have found a short term support around the $60 region. This rebound yesterday have managed to bring it out of its short term oversold condition which could help oil prices go further down. Looking at the formation, however, we see oil prices forming a little W bottom which could spell more upside to come should oil prices continue to climb today. This formation is considerbly stronger than when oil prices staged a rebound late last month. This is a critical juncture for oil prices... the movement of these few days could decide where oil prices might move towards at least in the short term. It just take one more day of rise to put oil prices in line for a W bottom rebound and one day of fall today to put it back down into its declining channel.
Oil prices and the coming Q3 earnings season could significantly affect the coming market direction.
Our Subscribers Continue To Make Over 40% Profit Yesterday on HAIN! Don't Miss Out On Our Next Trading Signal!
posted by Jason Ng at 7:39 PM
<< Home