Crude showed resilience yesterday even posting an increase despite weakness in the global equity markets and significant US dollar strength against the Euro which in turn was possibly fuelled by a downgrade to Standard & Poor's credit rating for Ireland . Although the price action was relatively limited, it reinforced the upward momentum being driven by bullish technical considerations. However a much improved global economic outlook certainly added support forcing investors to eventually disregard the inverse dollar correlation in yesterday's price action.
9 day moving average - $67.55 14 day moving average - $65.52 40 day moving average - $57.97
Crude moved lower in early trading touching an intraday low of $66.79 and looked poised for another sell off. However, the 9 day moving average proved once again good support level (a common feature of this short term up trend).Failure to cross below this indicator has brought additional buying power pushing crude higher to close at $68.74 giving a 69 cents gain for the day. So the consolidation in crude continued with the chart still showing an overall bullish picture for the near term.
The short and medium term trends are bullish and the long term trend is bearish.
Support: $66.79 (yesterday's low) Resistance: $70.40(high of 05/06/09)
Support:$66.40 (low of 01/06/09) Resistance: $69.60(high of 04/06/09)
Support:$65.92 (low of 04/06/09) Resistance: $68.95(yesterday's high)
Support: $66.88 (yesterday's low) Resistance: $70.15 (high of 16/10/08)
Support:$65.49 (low of 01/06/09) Resistance: $69.91 (high of 05/06/09)
Support:$64.91 (low of 03/06/09) Resistance: $68.79 (yesterday's high)