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Gold/Mining/Energy : Big Dog's Boom Boom Room -- Ignore unavailable to you. Want to Upgrade?

To: CommanderCricket who wrote (41247)	4/1/2005 10:25:22 PM
From: chowder	Respond to of 206209

Michael, The OIH has had two powerful gap days. Volume was good and price finished near their highs on both days. We now have a higher high over the previous high, which is bullish. But, we are overbought in the near term and I wouldn't be surprised to see some consolidation on Monday. The short term CCI, set at a 5 day time frame, since that's the time frame in which I trade, is showing overbought and already tipping down while price sets a recent high. I don't know where the OIH goes from here. Right now it is establishing a trading range, it hasn't re-established a break out and new uptrend yet. The two areras of concern are the old high at OIH 100. Does it form a double top and pull back? Or does it break out to new highs? It's something to watch and determine at that time whether to take some profits off the table or not. My concern is the support level for the OIH in the $95 and change range. I don't want to see support break down or I will have to sell. A pull back to the 20 would be nice as long as the price moves up from there. That would help to define a new trading range and the building of a new base from which to launch forward. Since my time frame is short term, the OIH is in a trading range, short term. When in a trading range, we pay attention to the oscillator indicators such as stochastic and CCI. They say we are overbought in that time frame which usually means we will see some profit taking. stockcharts.com[h,a]daclyiay[d20050101,20050401][pb50!b200!b20!f][vc60][iut!Lah10,30,5!Ld5]&pref=G For those with a longer term view, the chart looks lovely. The weekly chart shows the OIH bouncing off the 20 week moving average just like it's supposed to do. It is indicating additional upside but we don't know if it will put in a double top or not. If the OIH can break out to about 102, that would be very bullish. I don't know if the break out would continue but, it would still be very bullish based on what the indicators are suggesting. stockcharts.com[h,a]waclyiay[d20040501,20050401][pb50!b200!b20!f][vc60][iut!Lah10,30,5!Ld5]&pref=G The same analysis would apply to the XLE. It's funny, I came within a day of shorting the XLE. It was that close to breaking down and heading for the 20 week moving average. I guess Goldman with their $100 per barrel analysis got some attention. dabum