Crude Oil Trading Chart - WTI Crude Oil Futures 29th August 2009
Crude oil trading ended the week with a narrow spread doji candle, which failed to follow through on the promise shown in Thursday’s candle, where we expected to see a rise in crude oil prices on Friday as a result. Instead we saw a day of indecision, marked by the doji candle, with the oil price hovering above the 9 day moving average, and with the close of the oil trading session perched neatly on the average itself. The positive sign for oil trading bulls is that the close finished well above the deep support region below, which had been temporarily breached in Tuesday and Wednesday’s sharp reversal lower, only to bounce back quickly on Thursday. Given that oil traders were squaring positions ahead of the holiday weekend, then perhaps the price action on Friday was less surprising, but disappointing nevertheless. However with a new oil trading week ahead, the start of a new month, and a return to normal oil trading volumes in due course, I expect to see break and hold above the minor resistance at $74 per barrel, and from them move strongly higher past the initial target of $75 per barrel, which we may see breached during the week. Overall the WTI oil contract closed at $72.74 per barrel, having opened at $72.86, reached a high of $73.52 and low of 71.78. The Brent oil contract closed the oil trading session at $72.79 having opened at $72.64, reached a high of $73.35 and touched a low of $71.90.
WTI Oil Contract
Support: 71.78 Resistance : 74.23
Support: 68.74 Resistance: 70.99
Support: 63.26 Resistance: 67.92
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