Momentum + Gustav

08/27/2008 12:00 am EST


Thomas Aspray

, Professional Trader & Analyst

The daily chart of Oct. Crude oil still suggests a short term low is being formed. A move above $121.80-122 will give upside targets at $125.60 (38%) and then $129.80 (50%). The daily RSI shows that momentum is turning higher so the odds of a stronger Gustav rally are high. Key support at $111.50.