Purely Technical Nightly Commentary (October 30, 2006):
Crude Oil took a beating today. If it can bounce back right away, the commodity should do fine (to the upside). However, if it breaks significant support levels just below current price, there could be a deluge ahead.
Such an occurrence would not only impact related commodity markets but also a number of oil-related stock sectors. We have a number of stock picks, which have been doing quite well over the past few weeks, from this sector and would look to book profits and move away from the sector if any such breakdown were to occur. If you haven't checked out our recent blog posting "Recent Stock Picks" (from the October 29th issue of Purely Technical weekly newsletter), please feel free to check it out.
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