Amid renewed confidence in the outlook for the global economy and in anticipation of the US bank stress test results expected later today, equity markets surged again yesterday easily spilling over into the energy complex as well. This supportive sentiment was initially the trigger for the advance in crude which was accentuated later in the trading session by a bullish EIA report. The crude stock build was smaller than expected giving bears that were focused on crude fundamentals further headaches.
9 day moving average - $52.77 14 day moving average - $51.39 40 day moving average - $50.56
True to its current rediscovered form, crude moved sharply higher yesterday gaining $2.23 in a $3.05 dollars range. The move saw a new high for 2009 at $56.64, the strongest level since Nov 17 th with the next upside target just below the $59.00 level. The rally was significant showing now a convincing break above the $55.00 test level and technically making the last 6 weeks sideways range look like a rather longer consolidation before the next upper challenge. The chart also shows the moving averages starting to point higher.
The short term trend is bullish, the medium term trend is sideways and the long term trend is bearish.
Support: $53.59 (yesterday's low) Resistance: $59.65(high of 13/11/08)
Support:$52.77 (9 day moving average) Resistance: $58.85(high of 14/11/08)
Support:$52.56 (low of 04/05/09) Resistance: $56.64(yesterday's high)
Support: $53.86 (yesterday's low) Resistance: $58.59 (high of 11/11/08)
Support:$53.64 (low of 05/05/09) Resistance: $56.80 (high of 14/11/08)
Support:$52.36 (low of 04/05/09) Resistance: $56.30 (yesterday's high)
DOE Stock Figures (change in millions of barrels)
Crude +0.6 (+2.0) Distillates+2.4 (+1.0) Gasoline -0.2 (+0.5)