Oil Closing in on $110 Support Level

Oil has been trading in $10 ranges for some time now. Before it broke above $100, oil bounced back and forth between the high $80s and high $90s. After moving above $100, it traded up to $110 and then back down to the $100 support level twice before eventually breaking above $110. Once it moved above $110, it quickly traded up to $120 before once again pulling back.

Today's declines in the commodity have pulled it back down to just under $111. The $110 level should act as support here just as $100 did before. If $110 doesn't hold, oil will be in danger of breaking the uptrend that formed from the double bottom made in February.

Comments

[AmesTiedeman]

It will not hold 110. Next week it will run down right through it..

88 is the target..

[AmesTiedeman]

We will hit 100 in 3 weeks, pause and then collapse to 88. This is how it will play out. T. Boone Pickens is long and wrong. We see 88 before we see 150.

[ElliotMiller]

I don't know how Ames Tiederman can make price predictions with such absolute certainty. While he may be thoughtful and perhaps credible (although such absolutist comments are not evidence of that) I seriously doubt that Mr. Tieferman is as successful as Boone Pickens, whom he blithely descibes as "long and wrong". By the way, in a Bloomberg interview last week, Mr. Pickens pointed out that May was the weakest month for oil prices and predicted (with credibility and reasoned judgment based on more than 50 years of success in the oil business) that oil would drop to $85 short term before returning by the end of this year to $120-$150. Several other reasoned analyses have said the same thing, in detail and with more basis than sound bites.

[JREwing]

On the other hand, old Ames might be right. We may see 88 Bucks a barrel. If we split the barrel in two!!! Muhahahahahahahahahha!

[JREwing]

Uups! Looks like Columbian Rebs destroyed Ames' plan.

[AmesTiedeman]

My expectations for a pullback in oil do not seem to be materializing.
GS now says 141 in 2H 08'. Not good. Demand is falling but the price is not. This is a bubble. The Futures markets are no longer working.