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Oil price looking bearish? think again...
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q10activator
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07-Jun-2008 00:01
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Hello, just some food for thought. 1st sign: Brent crude just posted a rise overnight of 6 dollars, restoring back much of the fall of the week. 2nd sign: Political instability of USA. A republican victory can point to more fears of increasing US trade deficit. 3rd sign: Recent fall in oil price can be accredited to profit taking. As an investor, wouldn't you take profit once your share price start beating historical highs? 4th sign: June is generally a period of weak trading volume and prices can swing wildly based on a few speculators playing the game well. In such a scenario, it will be more beneficial to short than to long, and hence the pressure for prices to fall. As an investor, will you be more eager to take profit or cut loss? Especially considering that some of us adhere to the 7:21 rule. 5th sign: With respect specifically to this stock, prices are falling on decreasingly small volumes. The chart also shows trading entering a narrowing in the bollinger bands. Ah, my predictions are no where near accurate if previous attempts are any guide, but I believe that barring low volume speculative manipulation, the fundamentals are there that this stock has much to offer. |
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