Crude Oil just tested the USD70 level!

Last night, the Crude Oil has tested the uptrend line at USD70 level & rebounded! See Chart 1 & 2 below.


















Chart 1: NYMEX Crude Future's 60-minute chart as at 20.30 GMT August 17



















Chart 2: NYMEX Crude Future's weekly chart as at August 17


Before going further, I like to point out that the crude oil price in all the charts here refers to the price of Light Crude Oil that is traded as NYMEX Crude Future. The quote for this future contract can be easily obtained from Bloomberg (go here). The charts used here are obtainable from FutureSource's iFC Marketcenter.

Some of you may wonder why I am tracking the price of crude oil. Crude oil's recent price rise has contributed significantly to the rise in inflation rate. There are obviously other reasons for the spike in inflation rate, such as easy monetary policies adopted by the Fed & other central banks throughout the world from 2002-2004, etc. But, the accelerating price of crude oil has been the most watched phenomenon & if the crude oil rally were to weaken substantially (or, better still, to reverse downward), the positive implication of a less restrictive monetary policy that follows, would be most welcomed by equity investors.