Kezorm

Oil & Gas Exploration SPDR Charts a 'Shooting Star'

I don't know anything about TA, and must admit a certain contempt for it, but here is a question: Wouldn't such accelerations in the uptrend be the natural outcomes of a genuine, historical mismatch between supply and demand? Image an affluent, and extremely large crowd locked in a giant cavern, and the concession stands have a limited number of hotdogs and sandwiches to sell. Wouldn't the price of the sandwiches tend to accelerate in waves, just like your chart, as people begin to realize their predicament?

Another question. Suppose the world is making a transition from undervaluing oil, in times of surplus production to one where it's importance and finite supply are finally recognized. What might the shape of that curve be during the transition? Even if we can drill and generally innovate our way out of the scarcity crisis, the curve during that crisis might look very much like the present curve.