With stocks all over the oil and oil services sector trading up 20, 30, 40% or more in weeks…
VLO
ECA
… and leaving spikes in their wake today, with ADX at high or extreme levels, following a larger than expected rise in oil inventories – its time to get a ready finger on the exit button, or at least take some off the table.
Summary of Weekly Petroleum Data for the Week Ending March 4, 2005
U.S. commercial crude oil inventories (excluding those in the Strategic Petroleum Reserve) rose by 3.2 million barrels from the previous week. At 302.6 million barrels, U.S. crude oil inventories are in the upper half of the average range for this time of year.
… we should therefore at least be open to the idea that this current run may be ready for a more significant pause than we have seen in many weeks, if not a reversal.
First up we will look for support to move in near 52.50 on any decline, retesting prior resistance, now support until proven otherwise.
I’m taking 1/2 my open profits in the oil sector, resigned to perhaps having to rebuy in the days to come, and am prepared to exit the other half soon – tomorrow’s trade will likely tell the tail.
05.03.09 15:25 #