Red-Hot Resources

"Luck is not chance, it’s toil; fortune’s expensive smile is earned.”

Monday, February 05, 2007

Monday Is Chart Day

The big threat to gold right now is a potential gold sale by the IMF. Here’s a story from on why that probably won’t happen:

Now, let’s look at crude oil…

Last week, I said simple momentum would likely carry crude to 57.50, the 25% Fibonacci retracement of its big sell-off. It did that. Now, the next target is 61.18. If you’re more bullish, the 50% retracement (very common) is 64.47, or round off to 64.50.

This, despite the fact that US nat'l gas stocks are 6% higher than last yr; total oil products are 1% higher; and gasoline is 2% higher. Maybe political risk is being priced back in.

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