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Written by Ben
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Wednesday, 19 November 2008 |
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This morning I got a lovely wake up call from IG Index, my text alert telling me that Daily Brent Crude had fallen below $51. Late on Monday oil hit and breached a descending trend line I'd marked on my charts, the price retreating to the centre of the wedge shortly afterwards. No trade was taken at this point because I was concerned about voltility surrounding the expiration of the December Put options which the ft suggested were going to allow some traders to net profits in excess of 2000% and might lead to signficant volatility.
Below is the chart for Daily Brent Crude at time of writing:
 The price is still comfortabley in the middle of the descending wedge but I'll be watching the $50.00 mark carefully for an entry signal. Not to be one sided that descending trend line is getting stronger and stronger so I'll be looking for it to act as resistance again to possibly push oil below the $50 mark, as predicted at a recent meeting of International Oil groups who gave a target of around $40 per barrel.
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Last Updated ( Wednesday, 19 November 2008 )
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