Saturday, September 16, 2006

Oil Me Up

If I were a betting man I would bet that oil would be a good bet this next week. I am a believer in follow-through, or, if a stock is going up it should continue to go up until it doesn't and vice versa. I was just looking at the oil spyder XLE and it appears to me that it missed an opportunity on Friday to go down. In fact it showed how tired it was of the trend with a doji. While the doji is not necessarily a bottom indicator if XLE goes above 52.50 on Monday I'd say it was a good bet to take another run.

This was also confirmed by the OIH (oil holders ETF) on Friday. Again an opportunity to go down and instead it went up and is showing a consolidation. 126.50 on Monday would be an indicator that it might be coming back.

Charts from - an excellent site.

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