Oil Correction Likely
May 24th, 2008WARNING: This is not a recommendation to buy, sell or hold any financial instrument.
The U.S. Dollar Index is getting down into a support zone, along with a low band daily stochastic. A crank rally on the dollar would likely blow the columns out from underneath the oil; short term, anyway. Why? Look at the weekly oil chart. The stochastic is wound up like a three day clock, and it has been extreme for weeks. If the dollar does anything but decline sharply, oil could decline sharply.
Brent crude weekly, U.S. Dollar Index overlay
U.S. Dollar Index, daily
