Tuesday, February 1, 2011

Knowing Your Oil Companies Pays Off Big in These Geopolitical Events

Everyday, day in and day out we push the importance of the fundamentals, the numbers. But this weeks events reminds us that doing your home work and knowing where big oil companies and oil services companies are invested pays off big. Where does their risk lie? Today Dan Dicker from The Street .Com gives us some ideas on who is at risk and how he is trading the Egypt unrest. One company he mentions is Apache who does a large percentage of their business in Egypt. Just click here to get a free trend analysis for Apache.



Here is your pivot, support and resistance numbers for Tuesday......

Crude oil was lower overnight as it consolidates some of the rally off last Friday's low. However, stochastics and the RSI remain bullish signaling that sideways to higher prices are possible near term. If March extends the rally off last Friday's low, January's high crossing at 93.46 is the next upside target. Closes below the 10 day moving average crossing at 89.05 would temper the near term friendly outlook. First resistance is Monday's high crossing at 92.84. Second resistance is January's high crossing at 93.46. First support is the 10 day moving average crossing at 89.05. Second support is the 38% retracement level of the May-January rally crossing at 85.51. Crude oil pivot point for Tuesday morning is 91.14.

Natural gas was lower overnight as it consolidates some of Monday's rally. Stochastics and the RSI are oversold but remain neutral to bearish signaling that sideways to lower prices are possible near term. If March extends last week's decline, the 62% retracement level of the October-January rally crossing at 4.225 is the next downside target. Closes above the 10 day moving average crossing at 4.501 are needed to confirm that a short term low has been posted. First resistance is the 20 day moving average crossing at 4.482. Second resistance is the 10 day moving average crossing at 4.501. First support is last Friday's low crossing at 4.252. Second support is the 62% retracement level of the October-January rally crossing at 4.225. Natural gas pivot point for Tuesday morning is 4.390.

Gold was higher due to short covering overnight as it consolidates some of the decline off January's high. Stochastics and the RSI are turning bullish hinting that a low might be in or is near. Closes above the 20 day moving average crossing at 1359.10 are needed to confirm that a short term low has been posted. If February extends the aforementioned decline, the 25% retracement level of the 2009-2010 rally crossing at 1296.40 is the next downside target. First resistance is the 10 day moving average crossing at 1341.00. Second resistance is the 20 day moving average crossing at 1359.10. First support is last Friday's low crossing at 1309.10. Second support is the 25% retracement level of the 2009-2010 rally crossing at 1296.40. Gold pivot point for Tuesday morning is 1335.10.

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