Crude Comment 02/06/09
Overview: Crude moved higher again supported by the weakness in the US dollar and growing expectations that markets are going to experience a V shape recovery so significant economic improvement is drawing nearer. This contagious optimism spilled into equity market which saw a triple digit increase in the Dow Jones proving difficult to be ignored by crude's investors. As a result money which until recently have been sidelined in expectations of better opportunities / timing are joining the long side of the energy complex.
9 day moving average - $64.12 14 day moving average - $62.35 40 day moving average - $55.74
As crude moved higher for the fifth day in a row, it came as no surprise to see a new high for the year at $68.68 last seen on Nov 5 th 2008. The upward move ended with a gain of 1.60 dollars at $68.00 and to confirm the bullish trend is still intact, the opening price again matched the low of the day. Although all moving averages continue to point higher the chart shows the 9 and 14 moving averages beginning to distance themselves from the 40 day moving average.
The short and medium term trends are bullish and the long term trend is bearish.
Support: $66.40 (yesterday's low) Resistance: $70.53(high of 30/10/08)
Support:$64.74 (low of 29/05/09) Resistance: $69.21(high of 29/10/08)
Support:$62.77 (low of 28/05/09) Resistance: $68.68(yesterday's high)
Support: $65.49 (yesterday's low) Resistance: $70.15 (high of 16/10/08)
Support:$63.96 (low of 29/05/09) Resistance: $68.87 (high of 22/10/08)
Support:$61.78 (low of 28/05/09) Resistance: $68.03 (yesterday's high)