Wednesday, December 28, 2011

Crude uptrend driven by news event but will it last!!!

The below is an excerpt from Commodity Edge short term update by Waves Capital which is published on Daily basis. A few labelings are purposely deleted since it is a free section

Crude Daily
Crude Hourly

Crude rallied sharply yesterday after a senior Iranian official on Tuesday delivered a sharp threat in response to economic sanctions being readied by the United States, saying his country would retaliate against any crackdown by blocking all oil shipments through the Strait of Hormuz, a vital artery for transporting about one-fifth of the world’s oil supply. Crude immediately started going up and came very close to previous top of 5392 level.

We still continue to believe that we are in wave ? formation but the short term trend continues to be up. Wave ? in case of flats can exceed start of wave ? and can extend even further. The magnitude of the upward correction is always difficult to forecast and time wise this wave shall usually take more time to develop. This is what has happened here as well.

To read where crude is headed from here and if news is really driving crude prices higher write to us on for subscribing to our Commodity Daily publication..

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