Crude futures have slipped back below our 1st tier downtrend and uptrend lines in reaction to broad-based strength of the Dollar. This week's wave of negatively mixed econ data appears to be taking its toll on riskier investment vehicles, leading investors towards the Dollar and away from crude and equities. The S&P futures have sunk back below their psychological 1100 level and investor uncertainty seems to be picking up a bit. However, despite today's weakness, crude remains above 11/13 lows and the psychological $75/bbl level. Therefore, the potential remains for crude to stabilize and lock back into the thick of its November trading range.
Meanwhile, investors should keep an eye on the Dollar and gold to monitor whether we are merely experiencing a setback, or the beginning of a more extensive downtrend. That being said, investors may choose keep the technical cushions in place across the board as we await key data points such as Existing Home Sales on Monday and Prelim GDP on Tuesday. We're headed for a data-heavy week, and investors should have enough information to determine whether more profit-taking and revaluation is in order. On the other hand, if the data prints positive, crude could easily be knocking at $80/bbl in no time. Therefore, we will keep a close watch on key technicals across the board to see whether the Dollar or equities give investors a hint in regards to where the overall market is headed.
Resistances: $76.81/bbl, $77.43/bbl, $77.92/bbl, $78.35/bbl, $78.78/bbl, $79.69/bbl
Supports: $76.19/bbl, $75.56/bbl, $75.23/bbl, $74.93/bbl, $74.20/bbl, $73.70
Psychological: 2009 highs, $75/bbl, $80/bbl