The technical target for oil is in the low $86s. That level also is not far from the 61.8% correction of the rally from 49.90 to 147.27. Once we reach the low 87s, you should be wary of some serious short-covering. That buying could take the commodity back towards 103 or even higher. In the big picture, we will be looking for Oil to come off to much lower levels, but now is not the time to be shorting Oil. We will take this one step at a time. Download and study the attached chart carefully, oil-5-oct-08, and compare to the SNP500 post in the Featured Articles section. Ramki
Oil to edge slightly lower
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