Futures Oil Trading Chart
Initially daily crude oil prices opened lower on Friday crossing below the 14 day moving average but later in the session the futures oil market rallied and oil made some important gains for the second day in a row. It was a significant move, up 7% in a range of over 5.5 dollars although the 40 day moving average proved to be a good resistance level. A break of this should bring in fresh buying and target the mid December around the psychological $50.00 mark. The short term trend is sideways while the medium and the long term trends are bearish.
Support: $43.06 (14 day moving average) Resistance: $50.00 (psychological level)
Support: $41.94 (9 day moving average) Resistance: $49.96 (high of 15/12/08)
Support: $41.60 (Friday low) Resistance: $48.91 (high of 17/12/08)
Summary:
In the absence of any significant move in the US dollar, crude oil was supported by strong stock markets across the board despite some bearish economic data. Additionally the oil market received help from OPEC suggestions of a further cut in supplies, continued tensions in the Middle East as well as the natural gas dispute between Russia and Ukraine . This morning daily oil prices rose for a third day after Israeli troops entered Gaza, intensifying the conflict and fuelling speculation about oil supplies disruptions should any hint of escalation occur.
