Oil breaks key support level!
07-29-2008 | 06:17 AM
#1
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From: CFI
Oil breaks key support level!
Earlier today, oil broke a key support level of $122. Some analysts believe the next support level is down around $100. That's great news, but here's another bit of optimistic news. OPEC's chief said under normal circumstances, oil should be around $78. It may not get there, but things are moving in a positive direction. Keep your fingers crossed. This could be great news for all those headed out on furlough. You may not spend as much time away from flying as you thought.
07-29-2008 | 06:46 AM
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From: CRJ FO
(They're talking about stocks, but it applies to anything that's traded, like commodities)
The price level which, historically, a stock has had difficulty falling below. It is thought of as the level at which a lot of buyers tend to enter the stock. If the price of a stock falls towards a support level it is a test for the stock: the support will either be reconfirmed or wiped out. It will be reconfirmed if a lot of buyers move into the stock, causing it to rise and move away from the support level. It will be wiped out if buyers will not enter the stock and the stock falls below the support.
They have a nice chart that shows an example at:
Support
In a nutshell: it's a price at which buyers tend to come back into the market and "support" the stock (or oil).
07-29-2008 | 06:51 AM
#5
Kept down by the man
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From: 767 CA
Tristar, I wouldnt get on the pessimism bus just yet. Demand has not really driven the price as much as you think... The whole speculation world drove up most of that price... 130+/barrel is not something the market can/will sustain, hence why fuel prices have been coming down... Major oil company CEOs stated when testifying in front of congress a few months ago that they could still turn a big profit with $38-50/barrel oil... You do the math...
07-29-2008 | 06:53 AM
#6
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From: Upright and Locked
Stryker- I don't believe for one bit demand has anything to do with the price of oil. It's just another excuse, like one week its a rusty pipe in Louisiana, the next week some Sheik stubbed his toe...
07-29-2008 | 06:55 AM
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From: CFI, MEI
I, for one, want the price to come down and settle around $80-90/bbl because if you fall below that it is difficult to make money on heavier oil like oil sands. It also makes ultradeep oil and gas which really holds the most promise going forward uneconomical as well
07-29-2008 | 07:03 AM
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It's also sort of double-edged sword because higher oil prices have environmental and social benefits. Theres slightly lower air pollution and fewer people are getting whiped out in car crashes. More people biking and walking would also reduce obesity rates. But then high oil prices have disasterous economic effects. I guesss you need to find the balance...
07-29-2008 | 07:04 AM
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Here's the definition from Investopedia.com:
(They're talking about stocks, but it applies to anything that's traded, like commodities)
The price level which, historically, a stock has had difficulty falling below. It is thought of as the level at which a lot of buyers tend to enter the stock. If the price of a stock falls towards a support level it is a test for the stock: the support will either be reconfirmed or wiped out. It will be reconfirmed if a lot of buyers move into the stock, causing it to rise and move away from the support level. It will be wiped out if buyers will not enter the stock and the stock falls below the support.
They have a nice chart that shows an example at:
Support
In a nutshell: it's a price at which buyers tend to come back into the market and "support" the stock (or oil).
(They're talking about stocks, but it applies to anything that's traded, like commodities)
The price level which, historically, a stock has had difficulty falling below. It is thought of as the level at which a lot of buyers tend to enter the stock. If the price of a stock falls towards a support level it is a test for the stock: the support will either be reconfirmed or wiped out. It will be reconfirmed if a lot of buyers move into the stock, causing it to rise and move away from the support level. It will be wiped out if buyers will not enter the stock and the stock falls below the support.
They have a nice chart that shows an example at:
Support
In a nutshell: it's a price at which buyers tend to come back into the market and "support" the stock (or oil).
07-29-2008 | 07:23 AM
#10
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