Overview:

The non farm payrolls data came in lower than Wall Street expectations fuelling hopes of the start of an economic turnaround. The result was a rally in the global equity market which, surprise surprise, spilled over into the energy complex pulling crude oil higher with additional support coming from a steep decline in the US dollar. Meanwhile the bearish supply – demand fundamentals are still being ignored as crude inventories are the most since 1990 and oil demand is at a 10 year low.

9 day moving average - $54.72
14 day moving average - $52.98
40 day moving average - $51.31

Technical Report:

Crude continued its rally on Friday making a new high at $58.73, gaining 1.86 dollars to settle at $58.73. Technically, the fact that intraday high / low found a perfect match in the closing and opening price respectively points a bullish picture which is supported by the moving averages as well. It remains to be seen if crude will stop for a breather after last week’s impressive advance or is ready to challenge the resistance around $59.00 level.

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

WTI:

Support: $56.87 (Friday’s low) Resistance: $59.65 (high of 13/11/08)
Support: $55.42 (low of 07/05/09) Resistance: $58.95 (high of 17/11/08)
Support: $54.72 (9 day moving average) Resistance: $58.73 (Friday’s high)

OIL (BRENT):

Support: $56.64 (Friday’s low) Resistance: $59.43 (high of 07/11/08)
Support: $55.43 (low of 07/05/09) Resistance: $58.59 (high of 11/11/08)
Support: $53.86 (low of 06/05/09) Resistance: $58.50 (Friday’s high)