Pain at the Pump Cometh

Most likely this squeeze will be on us shortly. Crude oil has found solid buying support at $96.00 per barrel. Price has probed this level not once but four times and has found solid buying all four times! This usually means that prices have only one direction to go and that is unfortunaly UP.  Crude could trade around 105.00 in the next few weeks, which if it does will likely add another 10-30 cents per gallon to our gas bills.

Click on the graph to enlarge

Another reason why crude could surge over the next few days is at the bottom of this graph. The black and red lines at the bottom have almost crossed and turned upward, meaning that buying momentum for all the momo traders on Wall Street will be buying crude contracts with increasing intensity as those lines climb upward and those blue bars also start ascending. Friends protect yourselves against this inflation!