Overview:

Yesterday, in the face of a modest weakening in the US dollar and only timid gains in the equity markets crude's ability to completely deny the previous day's sharp sell off, strongly underscores the new found optimism in the energy complex. This fresh attractiveness of the oil as a preferred asset class has received extra ammo by a Goldman Sachs report suggesting the $85.00 as the possibly price level in crude by year's end. Today's much awaited non farm payrolls data is likely to impact the currency and equity markets which in turn should offer guidance for the short term direction in crude.

9 day moving average - $66.37 14 day moving average - $64.48 40 day moving average - $57.10

Technical Report:

Despite Wednesday's steep decline in crude we mentioned that technically the upward trend looks still intact. So the chart had again the upper hand with crude resuming its advance and quickly denying the previous session's price slump. Supported by the 9 day moving average the price strength was later accentuated by fresh highs that were posted above the $69.00 level. So crude gained $2.92 reaching an intraday high of $69.60 and the violence of the bounce back could be interpreted as yet another bullish signal.

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

WTI:

Support: $65.92 (yesterday's low) Resistance: $71.20(high of 22/10/08)

Support:$64.96 (low of 03/06/09) Resistance: $70.53(high of 30/10/08)

Support:$64.74 (low of 29/05/09) Resistance: $69.60(yesterday's high)

OIL (BRENT):

Support: $65.84 (yesterday's low) Resistance: $71.90 (high of 17/10/08)

Support:$64.91 (low of 03/06/09) Resistance: $70.15 (high of 16/10/08)

Support:$63.96 (low of 29/05/09) Resistance: $69.50 (yesterday's high)