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-- Posted Monday, 30 March 2009 | Digg This Article | Source: GoldSeek.com
While it seems like ages ago, it was a just a year or so ago when oil was rising sharply and experts were knocking one another over to be the first to scream for $100, $150 even $200 oil around the corner. The public outcry grew with each rise in gas prices. The crowd in Washington, who has been passing the buck for years rather than address the growing energy crisis, hauled the oil industry executives in front of Congress for the cameras in hopes of the public not realizing they had already kicked the can down the road versus having to actually do something about it. The great debate a year ago was about Peak Oil. While agreeing with the Peak Oil Theory, yours truly kept saying it was one economic contraction away. Well, I assume you agree we have one heck of a contraction at the moment? If so, it would stand to reason I’m now prepared to fully join the “Peak Oil Believers.” Every once in awhile someone or group expresses your own beliefs to a tee. This is true when it comes to this article. Since turning bullish on oil again back in late December, I greatly increased my fondness for it earlier this month by urging much greater exposure to it. Regardless of what it does the next day, week or month, I’m totally convinced I’m in at prices never to be seen again in our lifetime. 
The long-term technical picture is very bullish. After free-falling over $100, oil has managed to build a triple bottom base in the 30s, which has given it strength to take out its first key resistance of $50. While it’s still possible for a pullback to its 50-Day M.A. (which is presently in the mid $40s), the resistance levels of $60 and then $75 are likely targets in the next 12 months. I maintain an extremely positive stance for oil-related investments and would use any sustained weakness to add to and make new purchases. “Let me tell you something that we Israelis have against Moses. He took us 40 years through the desert in order to bring us to the one spot in the Middle East that has no oil.” - Golda Meir
-- Posted Monday, 30 March 2009 | Digg This Article | Source: GoldSeek.com
Peter Grandich is the Managing Member of Grandich Publications, LLC (www.grandich.com).
The company publishes The Grandich Letter (first published in 1984) which covers the metals and mining industry, follows world markets and economies, and covers the Canadian markets from an American prospective.
Grandich also provides a variety of corporate finance and development services to publicly-held companies.
Peter Grandich is also the Managing Member of Trinity Financial, Sports & Entertainment Management Company, LLC (www.trinityfsem.com), a Registered Investment Advisor in the State of New Jersey. Trinity provides investment advisory services to individuals, small to mid-size businesses, professional athletes and entertainers.
Peter is a long-standing member of The New York Society of Security Analysts and The Society of Quantitative Analysts.
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