Lightstream Resources Ltd. LSTMF

Is the oil crisis over?

[bullchart]

Governments will not tell us when. They will put things in place and then it gets leaked. I have my doubts but we will get a clue if oil recovers here. 

I mentioned earlier that it would be nice to get both crude and brent into the 80's. Both are now sliding toward the 10-12th Nov level. Both have been on a steady slide down since Jun 12. Crude from 107.56 and Brent from June 15 of 118.71. This is the first quick snap back during that long 5-6 month drop. Because of that, many will think any uptick will be met with a drop back to double bottom or pull back further. Maybe not. Oils could retrace back to a 50% fib before much of a drop. Watch some of the big oils if that happens. Some of the little ones will follow. That is what happens in oversold conditions. 

Having said that, the reason for depressed prices has not been solved. We still have the middle east and Russian problem. They may let it run back a bit toward the 50% retrace but "they" drove it down and "they" will continue to control the price. Certain stocks that were oversold(and shorted big time) were a clue yesterday. VOLUME at the bottom of a hugh drop over a period of time. LTD had the drop and the bottom volume. The trick is not to be able to be wise enough to keep immediate gains in order to play another day. 

Many sold off this and others and took a capital loss. 1) If we have both those short and covering and 2) those rebuying after taking a loss(some are already at their 30 days) and 3) the company buying back shares, and 4) traders that smell a deal.... well we could have a nice rally to the 5-6 level where if this were bought out we could see offers in that area.