Update for April 06, 2012

Price chart analysis for CLK12 for the week of 04/06/12:

Market Overview: Bearishly, warehouse stocks of crude have been rising dramatically as $100/b oil is taking its tole on the broader economy. Additionally, a stronger US Dollar index is putting downward pressure on price. Bullishly, tensions with Iran are at a very high pitch & a rebounding world economy would imply a greater demand for energy. Two daily downward price targets have been hit and prices are currently trying to establish a bottom. A push through Friday's highs would imply a bullish tone to the market. The initial upside price target would be $105.21 but prices could easily rally to fill in the daily island gap at $107.33. Conversely; if  $101.30 fails look for the big-round $100 to be tested in earnest with an ultimate target of the weekly gap at $98.67.

Trading Strategy: Because of the significant double bottom ($102.43) I am currently leaning bullish and will use pull-backs to the trendline (marked as 'V' on the chart) to enter long positions. If a top develops I will change my stance in that I will be looking for a 50% retracement of the recent rally ($102.40 area) and then a test of the recent lows ($101.30 area). If those areas fail we could see a quick drop below $100...

That's all for this post,
Brian Beamish FCSI
The Canadian Rational Investor
the_rational_investor@yahoo.com
http://www.therationalinvestor.ca