Monday, 11 June 2012

Bear Flag US Crude?

Despite my positive view on US Crude looking at the charts I have to wonder if there is a bear flag forming. I don't go in for a lot of technical analysis but in the past I have found bull and bear flags to be quite powerful formations. Overnight US Crude gapped up over 200 ticks from my cash in point last Friday. For a few minutes of faint regret at about 11:30pm last night having thought for a few minutes on Friday just putting in a stop at about +120 my feeling is that if you can get 50% of a move then that's pretty good and over a weekend you can never really tell what's going to happen.

If this bear flag plays out we could see a drop in Crude to 75-70 area.
I suppose it all hinges on the Greek election on 17th June. No doubt the Greeks will vote for whatever political entity that will promise the end of austerity politics and allow the party of early retirement, easy benefits and to continue. Sorry, but in the UK 70% of my aquaintances are basically socialists, even the ones who aren't(!), who think that cutting government debt is the incorrect and the government should continue to spend it's way out of recession. Because Cuba, who have probably out done every other nation on earth in government spending, is currently the most successful country in existence - an economic miracle. Obviously.

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