Crude Comment 10/07/09
Despite a slightly higher equity market and a sharply weaker US currency crude closed near flat but not before touching fresh lows below $60.00 suggesting the bears still hold the upper hand. This price action could also be interpreted as a refocus on bearish fundamentals combined with heightened concerns over the outlook of the global economy which is likely to experience increased regulation. Nevertheless some consolidation around current level is possible given all those debates of crude's plunge being overcooked on short term.
9 day moving average - $64.31 14 day moving average - $66.24 40 day moving average - $66.58
In early trading crude edged higher looking set for a rebound after the rampant decline of the last 7 days. However, later on the bears took over pushing oil prices back down into negative territory. Dropping below the psychological important $60.00 level has attracted bargain hunters just like in the previous session helping crude to recoup the daily losses. Overall crude finished a mere 3 cents lower closing at $60.30 with the important feature of making a new recent low at $59.25.
The short and long term trends are bearish while the medium term trend is bullish.
Support: $59.25 (yesterday's low) Resistance: $63.81 (high of 27/05/09)
Support: $58.93 (low of 19/05/09) Resistance: $62.67 (high of 08/07/09)
Support: $57.80 (low of 12/05/09) Resistance: $61.66 (yesterday's high)
Support: $59.76 (yesterday's low) Resistance: $64.68 (high of 28/05/09)
Support: $58.83 (low of 21/05/09) Resistance: $63.13 (high of 08/07/09)
Support: $58.41 (low of 26/05/09) Resistance: $62.17 (yesterday's high)