Overview:

Initially crude seemed to break convincingly higher yesterday helped by a continuingly strong equity market. But it was rather a false alarm as the upside follow through in crude prices proved elusive when later in the trading session stocks moved into negative territory. The lack of support was prompted by some strengthening in the US dollar as well in a day which looked a good representation of the current, choppy sideways pattern. So this game of discounting the bearish fundamentals is very much on and it's left to the positioning of crude investors ahead of week end to provide a much needed extra help in these ‘murky' waters.

9 day moving average - $50.04 14 day moving average - $49.65 40 day moving average - $49.53

Technical Report:

Crude reached a recent high of $51.92 yesterday but the rally ran out of steam and consequently we saw oil giving up its early gains. Overall crude advanced a mere 16 cents and is still on course for the next upside target at $52.44 seen on April 9 th . The moving averages are still very tight together providing support and for the moment pointing to more sideways movements.

The short and medium term trends are sideways, the long term trend is bearish.

WTI:

Support: $50.21 (yesterday's low) Resistance: $52.87(high of 02/04/09)

Support:$50.04 (9 day moving average) Resistance: $52.44(high of 09/04/09)

Support:$49.65 (14 day moving average) Resistance: $51.92(yesterday's high)

OIL (BRENT):

Support: $50.00 (yesterday's low) Resistance: $53.06 (high of 02/04/09)

Support:$49.25 (low of 29/04/09) Resistance: $52.09 (high of 24/04/09)

Support:$48.40 (low of 27/04/09) Resistance: $51.39 (yesterday's high)