Keith Richards
iPath S&P GSCI Crude Oil
OIL-N
PAST TOP PICK
Jan 03, 2012
(Top Pick Nov 9/11, Up 7.04%) Not in his new top picks but he still likes it. It is to be seen if it will break the resistance level of $28 and if it does not he will sell it.
This is a play on crude oil commodity rather than companies. The chart shows that oil has broken out of a base and a good possibility of oil getting into the $60 area. We are so close to this that he would take profits now. If oil were to pull back to $45 he would look at getting back in.
S&P GSCI Crude Oil ETN. Tracks the spot price. Oil is not in its seasonally strong spot right now but from a technical perspective, the chart looks like good for a short-term play. Broke up in October and has a neckline at around $22.
Does this track the price of oil accurately? This ETF does not track it well, because oil is based upon West Texas crude and its long term one-year contract. That eliminates the whole issue of contango. It does track the spot price, but you have contango issues.