Two Scenarios for Oil Prices

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By Mike Paulenoff | Published 07/10/2006 | Futures , Stocks | Unrated

Two Scenarios for Oil Prices

My work presents two compelling scenarios for oil prices that (1) Fridayâ�,��"�s peak at 75.78 ended the upleg from last November and prices already have started a prolonged corrective process; and (2) current weakness is a minor pullback ahead of one more thrust to another new high in the $78 area prior to the onset of a very significant decline. Right now, the weight of evidence leans towards scenario #1; however, my inclination is to give the benefit of the doubt to the emergence of another rally â�,�“ at least a retest of the $76 area â�,�“ prior to establishing short positions.

Mike Paulenoff is a 26-year veteran of the financial markets and author of MPTrader.com, a real-time diary of his technical chart analysis and trading alerts on all major markets. For more of Mike Paulenoff, sign up for a free 15-Day trial to his MPTrader Diary by clicking here.

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