Oil Put in a Double Top -Credit Suisse Sneddon (7/6/09)

Reported from BloombergTV today (7/6/09). Credit Suisse technical analyst David Sneddon said oil put in a "double top" today. "Double tops signal the trend is changing. Oil prices stalled out at roughly the same price over the last month". Sneddon sees $59 as the first support level with a potential break to $57.75.



If he's right, the players who hedged or bought all those out-of-the-money XLE and USO puts on June 23 could bank some fiat $$. (Read: August $USO, $XLE Put Options Active). $DUG will also perform well if oil continues to fall (UltraShort Oil & Gas $DUG Testing $20 Resistance July 6).

This is also a must read: Verlerger on Oil Glut: "There has never been anything like it", Sees it at $20/barrel (Naked Capitalism)