Oil technical outlook – bottom is in as expected

Oil weekly chart has made a medium term low and is now heading to 80. The same is true for the CRB Index and we can expect material stocks to outperform as one core sector on the sunny-side. The first confirmation will be a close above 50 and the whole move will be shaping in an ABC correction as we are in month 7 of the decline we might even see a retest of the lows within 2 months. The best quarter of this year for the bull-camp overall should be Q2 as the fatal earnings season of Q4 will trigger down revisions of the upcoming earnings and more negative market bias with a retest of the Nov. lows ( rather new ones) might drag oil down as well. Since we might have a severe Dollar top by then as well. Buying oil in weakness is the way to go for the next weeks as a rally to 60 is the least we should see in wave A

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~ by behindthematrix on January 7, 2009.

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