-
11 Attachment(s)
oil
I have the feeling that today, oil has drawn a reversal pattern that could lead to higher oil prices.
This is also confirmed by SCO.
[ATTACH=CONFIG]20800[/ATTACH]
[ATTACH=CONFIG]20801[/ATTACH]
USO is also showing accumulation, but it much less reliable.
[ATTACH=CONFIG]20804[/ATTACH]
It is interesting to see that the airline sector has been under heavy selling pressure, even though most US airline stocks are make new highs every day. I suspect that traders are starting to short airlines as a bet that oil is going to bounce and hence, airline's costs will increase, which will directly reflect on the stock price.
[ATTACH=CONFIG]20807[/ATTACH]
[ATTACH=CONFIG]20805[/ATTACH]
You can see below the corresponding patterns between oil and stock prices of these airlines.
[ATTACH=CONFIG]20799[/ATTACH]
[ATTACH=CONFIG]20803[/ATTACH]
[ATTACH=CONFIG]20809[/ATTACH]
here is the most recent EV patterns for two of these: LCC and LUV
[ATTACH=CONFIG]20802[/ATTACH]
[ATTACH=CONFIG]20808[/ATTACH]
Also, if oil prices bounce, oil sand stocks (CNQ IMO, etc.) should do well.
[ATTACH=CONFIG]20806[/ATTACH]