Overview:

Despite expectations of a quiet week due to the 4 th of July Holiday in US crude posted a strong advance yesterday proving that among all those warnings of a cautious approach optimism about the economic outlook is still making headlines. While a higher equity market and some weakening in the US dollar remained the supportive factors reports from China that they will be adding to the strategic reserve in the next 5 years possibly brought extra support. However the employment report on Thursday is likely to be the main influencing factor for the energy complex offering guidance on the short term.

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9 day moving average - $69.95 14 day moving average - $70.39 40 day moving average - $65.47

Technical Report:

We saw a sharp rally in crude yesterday breaking back above the $70.00 mark and finishing $2.75 higher at $71.67. The move was significant so it came as no surprise to see a convincing breach and hold above the 9 and 14 day moving averages after days of swings around these indicators. The early trading this morning shows a successful challenge of this year's high with a new record at $73.35 which could suggest that after a period of consolidation crude is now ready to continue its uptrend.

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

WTI:

Support: $68.35 (yesterday's low) Resistance: $72.78(high of 16/06/09)

Support:$68.07 (low of 24/06/09) Resistance: $72.30(high of 19/06/09)

Support:$66.67 (low of 22/06/09) Resistance: $71.91(yesterday's high)

OIL (BRENT):

Support: $68.10 (yesterday's low) Resistance: $72.40 (high of 16/06/09)

Support:$68.05 (low of 25/06/09) Resistance: $71.96 (high of 19/06/09)

Support:$67.58 (low of 24/06/09) Resistance: $71.42 (yesterday's high)