Crude oil is at an important juncture

The technical position of crude oil is very interesting (click on graph to enlarge).

$50 is a crucial level. Crude is hitting two major lines at this level. A downtrend line (in red) which has been in effect since July 2008. A break above this line could signal a major change in trend from down to up.

$50 is also a resistance level (blue line) in effect since last December. A move on the upside would confirm the change in trend.

The interesting question is: Is the strength in the price of oil signalling that the global economy is in much better shape than we think?

I will be happy to speak to your investment group on how the business cycle impacts investment strategies and the choice of asset classes.

To find out more about my in depth view of the markets and my strategy just visit our website https://www.peterdag.com/. You can review The Peter Dag Portfolio, free of charge of course. You can also call me at 1-800-833-2782 to discuss your specific money management needs.

George Dagnino, PhD