Posted on March 13th, 2008 at 1:04 PM

Crude Oil continues to baffle me! It seems to like using the support of our MOB at the 84 - 86 area (Crude Oil) but has NO RESPECT for any resistance levels in its path these days. It respected the downward 1X1 Gann Angle back in January, but seemed to get a little agitated when it saw the upward 2X1 hanging out with the 1X1. It was at this union of these two angles that we saw crude oil bear its teeth and move to even higher, unexplored territory. (see chart)

Once it put that behind it, we looked ahead to a pair of MOBs. One from the high back on November 21, 2007, and the other from the high on January 3, 2008. These MOBs both came in around the $108 level. (see chart) I was hoping to see Crude set up as a nice counter trend sell at this price level, and enjoy cheaper gas this summer as Crude went into a tail spin. However, crude must not like to see things in pairs. Just like when the two angles got together, once these two MOBs were reached, it has shown nothing but buyers bars! We're now above the $110 price level, which was the TOP of the upper of the two MOBs. A complete bar above this MOB level would mean that we are now no longer looking at it as resistance. It would then become (gulp) SUPPORT!

In addition to breaking these MOB levels, we are also above 75% of our MONTHLY Gann Box. It sits at $108.75. As long as we remain above this price, Crude Oil has a great chance of continuing its onslaught. What was a Wave 5 has now recounted to a Wave 3 on the Daily chart, which we predicted because of the increase in momentum of our Oscillator. (see chart)

Pay attention to this $108.75 level, as well as these MOBs. We'll have to see if the beast can be tamed, or if it will continue to act crudely, with no respect for resistance.

~Nate McCartney

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