Nov 17 2011 Golden Nuggets
I think the oil trade is done to the upside and is looking to reverse by tomorrow.
If the commodities cool off next week which I expect, then I think Oil can take a breather and correct back to around $90.
You may want to consider taking a small position in HOD (this goes up if oil goes down in price, its inverse to the Oil price) and we will watch it into early next week, maybe add a little more if Oil continues correcting.
Here is the chart for HOD, it spiked to the low end the Bollinger bands yesterday with RSI down and the volume picked up.
This chart looks to be reversing and the next few days will confirm it, but for now I think Oil has temporarily topped out, unless they go into Iran, then watch Oil spike up....
But for now, if things stay the way the are now, I can see this trading back up to $6.00 to $6.50 (maybe $6.80 at the 200dma)
Slowly add at today and on any weakness below $5.50ish over the next few days, maybe keep a bid for around $5.35.
If you take the trade and want to place a stop loss, I suggest $5.20 is a good price.