Jan '07 Crude Oil is approaching the magic point

Rationale: Once again, crude oil is recovering mid-day, quickly approaching the magical "technical" resistance price point of $63.82 area. Consequently, oil shares have rallied back pushing market internals back to neutral after the early morning market crush. This chart suggests a gradual bias upward in momentum accompanied by a classic base -building price pattern. With today's PPI surge and tomorrow's Crude Inventory report (Dec. 20th 10:30am), watch for upside sentiment.

The Bottom Line: Expect higher crude prices.