Bears can feel relatively safe as long as the price of Brent oil below $ 68 a barrel
Sep 4th, 2009 | By admin | Category: News and CommentsThe bulk of Russia's stock market yielded to the magic of the full moon, and as expected in long-proven signs tends downwards.
Only Securities Sberbank overweening, they're like werewolves at the full moon gain strength. We took no chances and have decided to cover short positions on shares of the issuer, because we feel that they wander a strong fundamental news such as the one that excited the quotes of the issuer at the end of June 2009, when a private investor bought from the market 1.4% shares. With such volumes, we compete not yet able.
Today, under the American statistics will be another couple of interesting movements in the market, but we turn off the trading system.
We believe that the objective laws of the market again will only work on next week. And domestic investors again begin to focus on oil prices and the signals of U.S. indexes, but not on the mysterious signs Sberbank.
their opinion about the future dynamics of the U.S. indices, we have expressed this week, we look forward to another short spurt up, and after a deep correction down to the level of 8800 points on the Dow Jones index and 940 points for the index S P.
But the dynamics of oil prices, we have recently covered the weak, let me correct ...
Oil prices, in our opinion, this is not likely to have decent support for Russia's stock market. Quotes prices for Brent crude fell behind the line of support for short-term downtrend channel from the beginning of August 2009 - 68 dollars per barrel. And now they can attempt to Render this channel down. That is potentially under tonic analysis is a very big chance rollback prices of Brent crude on the level of $ 62.
Image price of oil of mark Light is the same unfavorable for the bulls, like the picture in oil prices marks Brent, with a little digression. Quotes of the class of oil, although it fell a few days for the lower boundary of a downward channel from mid-August 2009 - 66,8 dollar, managed to return to his channel. But, hardly a line of support downstream channel is a priori can be considered reliable, especially when the probit sign up trend from July 13, 2009 $ 70 per barrel.
In summary set out above we can see that, now, given the technical analysis of the price of oil, preferably on paper oil and gas companies to play down as the market in general. Bears can feel relatively safe as long as the price of Brent oil below $ 68 a barrel, the price of Light below the $ 70.
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