A continuing weaker US dollar seems to drive significant buying power into energy complex evolving into a self perpetuating cycle like domino principle where once started the movement speeds up by itself. Although the equity markets remained supportive, recently they rather took the second spot in driving the price of crude oil. The fundamental picture has hardly changed overall despite last month 12 mb draw in crude stocks so it's the renewed global optimism rather than the current reality making an impact.
9 day moving average - $63.27 14 day moving average - $61.52 40 day moving average - $55.32
True to its form crude posted another strong rally on Friday gaining $1.80 to settle at $66.58. Reaching a fresh high for 2009 has now became the norm rather than the exception and testimony to this bullish trend was also the almost perfect match of high / low of the day with closing / opening price. Technically, everything on the chart points upwards with steady rallies followed by small pockets of ‘healthy' consolidation along supported by all moving averages.
The short and medium term trends are bullish and the long term trend is bearish.
Support: $64.74 (Friday's low) Resistance: $69.21 (high of 29/10/08)
Support: $62.77 (low of 28/05/09) Resistance: $68.61 (high of 31/10/08)
Support: $62.20 (low of 27/05/09) Resistance: $66.59 (Friday's high)
Support: $63.96 (Friday's low) Resistance: $66.47 (high of 31/10/08)
Support: $61.78 (low of 28/05/09) Resistance: $66.00 (high of 05/11/08)
Support: $60.99 (low of 27/05/09) Resistance: $65.80 (Friday's high)