- WTI Oil Trading Chart 27 Aug 2009
Following Tuesday’s volatile price action in daily crude oil prices by contrast yesterday’s oil trading session was relatively muted, with the oil market ending the session as a doji candle. Despite the deep downwards move in crude oil prices at the start of the week, the 9 day and 14 day moving average did offer some degree of technical support to any further selling, and this phenomenon was seen once again in oil trading yesterday, as the two moving averages combined to provide a barrier to any deeper move. This would seem to suggest that we could see a rise in oil prices today, as the move higher is re-established once again, in much the same way as has happened following previous reversals, principally in late July and early August. However, it is important to note that technically we have already pierced the support region below with yesterday’s closing price finishing marginally inside this region and below the $72 per barrel price handle which defines the upper boundary. As a result we cannot be sure that this region will hold and therefore any oil trading positions should be approached with care today, until we see a break and hold above this price point once again. Should the reversal lower continue, then any breach of the lower boundary would be a bearish signal for the medium term. Overall the WTI oil contract closed the oil trading session at $71.43 per barrel, having reached a high of $72.64 and touched a low of $70.67. Meantime the Brent oil contract ended the day at $71.65 having reached a high of $72.48 & touched a low of $70.60.
WTI Oil Contract
Support: 69.59 Resistance: 72.08
Support: 66.34 Resistance: 69.08
Support: 59.78 Resistance: 65.43
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