20050829 A second consecutive bearish candlestick, but the chart looks like it is going to take off like a rocket. In classical technical analysis, it is akin to a blow off top. 100% of traders and analysts say US75 above easy soon for oil price, and what does the market do? The bears slam down the buls today. All the talk is about the hurricane Katrina (now a mere thunderstorm) disrupting supplies. Yes the storm can affect the oil rigs, but all the refineries in Louisiana and Forida suspend production. Didn't anyone think tht if the refineries were closed, the barrels of oil from other parts of the world nrmally refined there stack up. Supply > demand, so when the storm blows over (it won't last 2 weeks) the oil price could plunge. This is irrational exuberance, which the long speculators could end up with many lifetime supplies of oil in their backyard.. 

Crude Oil futures chart