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The papers this morning carrying two stores that seem to conflict each other. Probably not, if one discounts the effect of timing.

A the story describes a world awash with crude oil, with the places in which to store operating below capacity remaining to the point where oil tankers are being paid tens of thousands of dollars a day just to stay anchored at sea with nothing to do for crews to repaint the decks. The second story discusses the merits of buying, now fund shares in an exchange traded crude oil which has as one of its bases of calculation of value, the assumption that the current oversupply of crude will pass soon and we'll see a return to scarcity and price growth from previous years. Everything is on the calendar. Both stores can be considered correct, if they are willing to discount the effect of time. To this regard, the examination of patterns of crude oil could sail give us some clues about the likely path of its price in the short term.

It is said that "high prices cure high prices, and low prices cure low prices. "Right now, we have a situation of low prices. This condition has been caused by continued pumping oil out of the ground at a time when demand has been declining worldwide, recently at a rapid pace. Obviously, this can not continue forever. One result has been a belated recognition by the major producing countries are pumping more oil than the world can use, and therefore, have no choice but to cut production despite loss income is very harmful to their economies.

Let's look at the candlestick patterns. In the April contract, prices make a new low of $ 37.41 per barrel on 18 February. The opening price was the same as the height of the day, the closing price was the low of the day. The candle did not show "tails" whatsoever. On 24 February, prices rose in a white candle, which indicates that at the end of the day was greater than the opening day. Higher prices at the opening set during the next two days, ending in a white candle, and it seemed that prices could be out of racing again. However, the next day was marked by another white candle, but – Developer – Prices closed lower than the previous day. Standing by itself, which is a good day, but when all was said and bulls had made the unit price higher than the previous day. In fact, the candlestick formation that day was very close to a "last surrounding bullish "pattern, which is bearish despite its name.
The next day told the story, when prices gapped lower on opening, closing lower than the opening, and the loss of $ 4.61on the day.

A weekly chart review reveals that Crude Oil prices fall from last July everything is marked by a series of ups and downs so depressing, which of course is the sign of a downtrend. It is evident from the letter that the rate of decline is slowing and prices are saucering. " Going out on the other side of the saucer, or is what we are seeing only a temporary rise in the low net of 18 February? open gap up today and about $ 3.73 higher argue that prices are already out the other side of the plate. It will be another few days of development price before they can know whether this increase is real or whether, on the contrary, prices are aimed at a new low. We will be watching for Candlestick reversal patterns to give us Any idea what's in store next for crude. The most unfortunate is that the money for exploration and development is hampered at the very moment that such investments would be more valuable in the coming years, as the world economy recovers.

The author is a retired corporate CEO and attorney, and a long-time investor. He has passed the NASD Series 65 Investment Adviser exam. He publishes his Investment Newsletter and Action Suggestions three times per week at http://www.candlewave.com/ The Action Suggestions provide specific Safety Stops on major Indexes; a review of the major Indexes; an individual review of each of the Gold, Silver, and Crude Oil markets; an individual review of each of the Dow 30 stocks and of selected non-Dow stocks; a review of five popular Forex pairs; and his Daily Commodities Report. The Daily Commodities Report is also available as a free-standing service at http://www.commoditiesjunction.com/ The Operating Manual for his copyrighted “Candelaabra” technical analysis trading system for all financial markets is also available via info@candlewave.com “Candelaabra” rides atop Genesis Financial Technologies’ “Trade Navigator” © platform. “Trade Navigator” with the “Candelaabra” overlay, and data feed, are available directly from Genesis by arrangement with CandleWave, LLC.

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