Stocks & Commodities V. 23:12 (98): At The Close by Jayanthi Gopalakrishnan
Continuing from last month’s look at crude oil contracts, we did experience some easing in crude oil prices. The 40-day moving average turned down, the upward sloping trendline broke, and up until now, prices have been below the 40-day moving average. But they have yet to reach the levels I mentioned
in my column last month. If you look at the chart of crude oil contracts in Figure 1, you see there was a sharp decline in prices followed by a pullback. Will prices move back up to the moving average, or will they continue falling?