Overview:

A sharp rebound in the equity markets has definitely restored some optimism regarding the global demand which easily spilled over into energy complex pushing crude to fresh highs for this week. As it's the case with a strong rally some additional supportive factors were involved: a refinery issue at Exxon Mobil's Texas facility and continued civil unrest in Nigeria threatening further disruptions. Today's positioning ahead of week end will give a better indication of market sentiment and it remains to be seen if the upside potential will materialise or more consolidation is underway on the short term.

9 day moving average - $69.68 14 day moving average - $70.30 40 day moving average - $64.60

Technical Report:

We saw a strong rebound in crude yesterday which finished with $1.88 gain to settle at $70.36. The move was significant enough to see a breach above the 9 and 14 day moving averages completely denying this week's losses. Breaking back above the $70.00 mark has placed crude on course for another challenge of the recent high of $73.23 seen on June 11 th . However there's some resistance at $71.74 as well as $72.15 and further consolidation within the $66.00 - $73.00 range should also be taken into consideration.

The short term trend is sideways the medium term trend is bullish while the long term trend is bearish.

WTI:

Support: $68.34 (yesterday's low) Resistance: $72.15(high of 15/06/09)

Support:$66.67 (low of 22/06/09) Resistance: $71.74(high of 17/06/09)

Support:$66.26 (low of 23/06/09) Resistance: $70.92(yesterday's high)

OIL (BRENT):

Support: $68.05 (yesterday's low) Resistance: $71.96 (high of 19/06/09)

Support:$67.58 (low of 24/06/09) Resistance: $71.12 (high of 17/06/09)

Support:$66.12 (low of 22/06/09) Resistance: $70.51 (yesterday's high)