Thursday, August 07, 2008

Oil set for the 200-day MA

The best news for the markets is the steady drip of losses in oil prices. Yesterday's resistance breaks and challenges on 50-day MAs will be helped by the void of support in oil.

Other than the reaction low in late April / early May c$110 there isn't a whole lot to prevent oil prices from testing its 200-day MA. This should translate into higher prices for the broader markets.

Dr. Declan Fallon, Senior Market Technician, the free stock alerts, market alerts and stock charts website