Crude declined sharply driven by a strengthening in the US dollar which proves resilient lately despite constant attacks from all sides and a sizable sell off in the equity markets as prospects for global economy are still uncertain. Some bearish statistics from China showing increased stockpiling rather than improved demand added extra pressure with civil unrest in Iran being also shrugged off by the energy complex. And the icing on the cake (for the bears) among all these bearish factors was provided by the World Bank cutting its 2009 growth forecasts for most economies.
9 day moving average - $70.13 14 day moving average - $69.94 40 day moving average - $63.18
Crude remained under significant downside pressure losing $2.96 or 4% to finish at $67.25 last seen on June 8 th . Taking another nose dive in effect denies the last two weeks gains after recently violating the uptrend line extending back to April. The violent retracement of the last few days has also put the short term moving averages on the path of an imminent cross which would confirm that momentum has somewhat shifted. The chart pattern points to further volatility with the 40 day m.a. over $3 lower and recent highs a long way above. However a break of key support at around $62.50 is needed to technically change the medium term bullish trend.
The short term trend is sideways the medium term trend is bullish while the long term trend is bearish.
Support: $66.67 (yesterday's low) Resistance: $71.28(high of 17/06/09)
Support:$65.92 (low of 04/06/09) Resistance: $70.69(high of 09/06/09)
Support:$64.96 (low of 03/06/09) Resistance: $70.21(yesterday's high)
Support: $66.12 (yesterday's low) Resistance: $70.93 (high of 15/06/09)
Support:$65.49 (low of 01/06/09) Resistance: $70.06 (high of 09/06/09)
Support:$64.91 (low of 03/06/09) Resistance: $69.62 (yesterday's high)