***We rolled our feeds from September to October yesterday at the following levels:
OIL $0.46 WTI $1.96 GSO $7.00 All Contango ***
Despite continued weakness in the US dollar and higher equity market crude closed near flat yesterday. This reluctance of the energy complex in reacting to the bullish guidance from financial markets could be interpreted with the EIA stats data. For weeks the supply/demand balance has been on the bearish side and in the face of increasing talks of a sooner than expected recovery in the US economy a respective significant improvement in crude demand is yet to be seen. And that's bound to make a few bulls nervous.
9 day moving average - $70.94 14 day moving average - $69.68 40 day moving average - $66.84
We saw crude moving higher in early trading reaching an intraday high of $72.22 and it seemed the market is on course oh challenging last weeks high of $72.88 on Aug 7 th . However the rally was followed by profit taking as bulls were not ready to stay in the market for too long pushing crude price back into negative territory. The session finished near flat with crude toying again with the 9 day moving average and technically remaining on a path of consolidation.
The short and medium term trends are bullish while the long term trend is bearish.
Support: $70.03 (yesterday's low) Resistance: $72.88(high of 07/08/09)
Support:$69.72 (low of 05/08/09) Resistance: $72.42(high of 06/08/09)
Support:$68.84 (low of 12/08/09) Resistance: $72.22(yesterday's high)
Support: $72.96 (yesterday's low) Resistance: $75.55 (high of 07/08/09)
Support:$72.24 (low of 04/08/09) Resistance: $74.89 (high of 04/08/09)
Support:$71.68 (low of 12/08/09) Resistance: $74.72 (yesterday's high)