Andrei Pehar, Sr. Currency Strategist, fxKnight.com
Known as the "Black Knight" in trading circles, Andrei is a private fund manager, consultant to management, and a sought-after speaker, trainer, and coach for professional traders and individual investors alike. He played in professional chess tournaments at a young age, earning a rating in the U.S. Chess Federation, and went on to further hone his strategic skills by studying Japanese martial arts, bringing with him a unique perspective to the financial markets.
His client list includes prestigious names such as UBS, Tower Asset Management (named by Bloomberg as top asset manager), Clifford Associates (investment counselors since 1915, officially acknowledged as the oldest in the United States), and several other high profile firms specializing in investment and wealth management for musical artists, sports celebrities, and other ultra high net worth individuals and trusts. He is currently working on a book which will, for the first time, introduce retail traders to institutional trading strategies and techniques.
Click Here to view videos by fxKnight
Known as the "Black Knight" in trading circles, Andrei is a private fund manager, consultant to management, and a sought-after speaker, trainer, and coach for professional traders and individual investors alike. He played in professional chess tournaments at a young age, earning a rating in the U.S. Chess Federation, and went on to further hone his strategic skills by studying Japanese martial arts, bringing with him a unique perspective to the financial markets.
His client list includes prestigious names such as UBS, Tower Asset Management (named by Bloomberg as top asset manager), Clifford Associates (investment counselors since 1915, officially acknowledged as the oldest in the United States), and several other high profile firms specializing in investment and wealth management for musical artists, sports celebrities, and other ultra high net worth individuals and trusts. He is currently working on a book which will, for the first time, introduce retail traders to institutional trading strategies and techniques.
Click Here to view videos by fxKnight
Crude Oil: A Key Level to Watch
Posted 11-20-2008 at 07:31 PM by fxKnight.com
One of the factors which has been center stage throughout this crisis is the price of crude. High oil prices were initially blamed for the fall of the US stock market. And yet, with oil trading at $52 a barrel, we find the Dow still hovering right around 7900. The question on everyone’s mind… is what happens to the economy if oil should start to go back up?
Oil affects the cost of doing business for almost every company out there - whether they use plastics, or have to ship their product. And it can also affect the movement of many currencies, especially the Japanese Yen (JPY) - since the island nation has extremely limited domestic production - and the Canadian Dollar (CAD), which has the world's second-largest reserves.
So where is the price of this important commodity headed next?
Currently, we are headed down towards a weekly pivot point at 52.17, which is expected to provide some support and potentially bounce us back up to re-test 55.28 as resistance. What happens next will be critical.
If price breaks back above this key level, then we may see a consolidation period between 55.28 and 70.49 (with in-between levels of 58.68 and 63.19 to keep an eye on), depending upon the results of the next OPEC meeting in Cairo.
If instead 55.28 can hold as resistance, we may see further drops - if prices fall below $50, the next support is at 47.30 (with 39.70 and 33.56 below that).
Oil affects the cost of doing business for almost every company out there - whether they use plastics, or have to ship their product. And it can also affect the movement of many currencies, especially the Japanese Yen (JPY) - since the island nation has extremely limited domestic production - and the Canadian Dollar (CAD), which has the world's second-largest reserves.
So where is the price of this important commodity headed next?
Currently, we are headed down towards a weekly pivot point at 52.17, which is expected to provide some support and potentially bounce us back up to re-test 55.28 as resistance. What happens next will be critical.
If price breaks back above this key level, then we may see a consolidation period between 55.28 and 70.49 (with in-between levels of 58.68 and 63.19 to keep an eye on), depending upon the results of the next OPEC meeting in Cairo.
If instead 55.28 can hold as resistance, we may see further drops - if prices fall below $50, the next support is at 47.30 (with 39.70 and 33.56 below that).
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Recent Blog Entries by fxKnight.com
- Crude Oil: A Key Level to Watch (11-20-2008)
- Has the Aussie Found Bottom? (10-22-2008)
- The Long−term Outlook for Gold (10-15-2008)
- Next Levels to Watch for the EUR/USD (10-09-2008)
- US Senate Passes Bailout Bill − Markets Unimpressed (10-02-2008)
