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Suncor & Crude Oil – Brief Update

from ChartWorks:: published by Institutional Advisors

Bob Hoye
June 24th, 2006

While the crude oil price continues to hold four dollars above the 50-week moving average ($64.88) the oil stocks are getting down into oversold territory. Suncor is used as a proxy for analysis in the group, however Canadian Oil Sands (COS-UN.TO) and UTS (UTS.TO) are also closely correlated to oil prices and approaching oversold levels.

As noted earlier this month, in bull markets the crude oil price has a tendency to test the 50-week moving average in June through August. More specifically, it comes within 1% to 3% of the average ($65.50 to $67.00 over the next few weeks).

Once these markets turn higher we should look forward to a rally into the normal seasonal high in late September through early October.

June 24th, 2006
Bob Hoye

EMAIL:: bobhoye@institutionaladvisors.com
CHARTWORKS WEBSITE:: www.institutionaladvisors.com

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