c03 JWBT016-Busby September 30, 2008 14:23 Printer: TBD
44 A FOUNDATION FOR SUCCESS
FIGURE 3.4 A daily chart of crude futures. It captures the $120 high and records
rising prices.and prices took off. At the time of this writing some key numbers for oil as
depicted on the chart are the $100 area as well as $110 and $120.
With supplies under stress and demand growing, that $100 resistance
level was not too formidable for the bulls. Oil prices escalated to the cen-
tury mark and soon crossed it. At the time of this writing, crude futures
are trading around $120 a barrel. Will we soon see the $150 mark? Only
time will tell. At any rate, I would not suggest taking a short or a long oil
position during current market conditions until crude falls below the $100
price. Once support at $100 is broken, prices may fall to the $85 mark. In
light of current world conditions, it is hard to imagine a huge sell-off in oil.
At the present time, the key numbers to watch when trading crude are 85,
100, 110, 120, and 130.Gold Numbers
Gold is another interesting commodity. Many traders, including me, watch
gold prices and use gold as a market indicator. In times of trouble, gold