Stocks & Commodities V. 23:11 (98): At The Close by Jayanthi Gopalakrishnan
For reasons that are obvious (think prices at the gas
pump if youíre confused), I have been watching the action in the crude oil market recently. Given that havenít seen prices come down that much at the gas pumps, I thought Iíd pull up a chart of the continuous crude oil contracts to see where things were heading. Iím not trading crude oil contracts but thought Iíd share my observations. Usually, I overlay a 50-period moving average but in this case, I thought a shorter period would fit better. I applied the 40-day moving average to the daily chart of the crude oil continuous contracts, since it seemed to closely correlate with the trendline displayed in Figure 1. If you look at the current action (as of September 16, 2005), you will see some
interesting behavior, in terms of the trendline and moving average displayed.