Crude oil at $100 a barrel will be soon a reality & more trade Ideas for next week

Hello dear readers,

For the first time since a long time, AC Investor Blog was not updated on Thursday due to just one factor, Valentine's Day. There is always a time when we have to think ourself and see what is going on around us, and that time was Thursday. So, sorry, be comprehensive and let's back to work.
Why are oil quotes so hot again? Some guys say OPEP is making all efforts to maintain prices above $80, others saying that US slowdown will not affect directly demand of Oil and just few of them anticipating a possible war in the Middle East (unlikely I'm sure but there is always a possibility), and do you know which is my point of view in all of this scenario, speculation....... to pump this commodity to high levels. Currently, surging oil prices have darkened the economic outlook in the United States and also have threatened economic growth in Europe, so the crude are very linked to the actual situation of instability in economy but some guys are trying for all ways to hide this fact and focus only the currently debility in economic with a problem of subprime. Presently, it appears that high prices are acceptable to the American and Europeans consumers, reports of demand still showing no signs of a dramatically cut by people who uses their cars as the main way of transport, on the other hand outside the US, demand increases are being led by India and China, where growing economies mean more cars and trucks and more factories that burn oil and gas. All these factors together are a good tone for traders, speculate and pump this commodity, even knowing that economy will slowdown. So, there is no reason to dream with Oil prices at $50, 60 or even $75 again, we are facing a lot of changes in our way of life and we will pay for that. Did you saw our governments providing economic incentives for alternative energies or creating new ways for consumers slowdown the use? I'm not; probably I'm blind and just seeing the Black liquid in front of me. Anyway, and I'm not a fundamental analyst of Oil neither like to talk about that, but I'm just alerting you for the prices that you will see soon in front of eyes when you'll have to go to a gas station with your car. From a technical perspective, Oil will soon spike again and next stop will be well above $100.

Chart courtesy of stockcharts

Technically Crude Oil is Bullish in all ways and their quotes become more hot than you could imagine....... Hundred-dollar oil is a mere psychological milestone and it will be soon broken. I hope be wrong in this opinion, because this could have a big impact in the economy around world.

Chart courtesy of stockcharts

SPWR broke out of a nice resistance and is pulling back to test breakout area, previous resistance acting now as support. Keep an eye for a bounce. Technically speaking, stock is now in a rally as K line is on top of D line and MACD above sell line. Although the stock is showing some weak signals in medium term, the stock does have the potential to be back around 200 day moving average or around 85 cents per share.

Chart courtesy of stockcharts

SNDK - Stock is trading just $1 buck above it’s 52 week low of 24.29, and well below its high of $59,75. A close below $25,25 would impart further weakness and could a subsequent drop to $24.29. KD is showing weakness as K line is now below D line. At the moment, I favour a positive view on the stock and expect the share price to hold above the support at $24.29. However you should keep in mind that stock is in a Strong Bear Market.

Chart courtesy of stockcharts

EBAY – stock is sitting right around the 20 dma. This stock has some support around $27.50 range. A close below this level will push share price down significantly to next support level around $26. Stay tuned.

Chart courtesy of stockcharts

ADCT - Stock is in a downtrend in the recent weeks and there are no signs of the end of this trend. A close below $13,50 would communicate further weakness and the stock could drop to $13-12.65. Only a close above $13,96 would reinstate positive trend. Hold with a stop-loss at $13,50.

Chart courtesy of stockcharts

RMBS - The stock is trading in a tight range on low volume between $19-18, after breaking out early this week above its 200-day moving average. I'd look to the 50-day moving average as the next buy point. Let’s keep an eye on RMBS.

Disclaimer : Trading stocks involves risk, this information should not be viewed as trading recommendations.The charts provided here are not meant for investment purposes and only serve as technical examples.

That's All. Have a nice weekend !!!

AC

Labels: ADCT, Crude Oil, EBAY, RMBS, SNDK, SPWR