Walmart's New Health Food Push: Is It Too Hard to Swallow?
Bonds Are a 'Safe' Investment: A Big Lie Gets Even Bigger
In the oil market, as in the U.S stock market, there are fundamental analysts and technical analysts. Fans of fundamentals follow things like inventory levels, global oil demand, and refinery capacity. Fans of technicals follow things like the 50-day and 200-day moving average and chart formations (double tops, double bottoms, etc.).
Moreover, rarely do these two analytical schools merge in one trader: you're usually either a fan of fundamentals or technicals.
A 'hybrid' trader
Energy trader Jim Dietz breaks the mold. He's a hybrid trader, of sorts. He primarily follows fundamentals, but gives technical analysis its proper respect, and currently on the chart are two, technical oil price levels that are worth paying attention to, as they are likely to provide clues regarding oil's direction, he said. Dietz added that he is presently flat, or had no open energy trading positions.
Oil, Dietz said, "has closed below support in the $115-116 range for two days in a row." Tuesday would be the third, if it closes below $115, and if it does, that would be bearish for oil, he said. Oil was down 29 cents to $112.58 in mid-day Tuesday trading.
Also, oil is approaching the 200-day moving average at $110.20 - - "the toughest average to break in trading," Dietz said. Likewise, if oil closes below the 200-day MA for three consecutive days, that would be another bearish sign for oil "and a sign we're most likely headed back toward $100."
Oil Analysis: Regarding the $100 level, that's not a technical level, it's what traders call a psychology level, and a key one at that: expect a major battle between oil bulls and bears at $100. It took four tries over four months to break through it to the upside during oil's bull run. One can only imagine the battle if/when oil descends to the $100 range.
Goldman Earnings Sink After Buffett Dividend
Johnson & Johnson's Income Falls 23%
Burberry Shares Leap on Sales Update
