Crude Oil Price Chart - Daily Oil Prices January 16th 2009
Daily crude oil prices moved slightly lower yesterday, and this morning the big rally shown by the chart is misleading as we rolled over from the Feb contract into the March contract. The technical picture indicates that the moving averages are about to converged in a bullish way but for the moment sideways movements are still favoured, as there’s no hint of a strong buy/sell signal. With the failure to make new lows over the past month or so we could be seeing a bottoming pattern. The short term trend is sideways while the medium and the long term trends are bearish.
Support: $43.80 (yesterday’s low) Resistance: $50.05 (high of 05/01/09)
Support: $42.79 (low of 09/01/09) Resistance: $48.91 (high of 17/12/08)
Support: $41.84 (low of 13/01/09) Resistance: $48.36 (high of 11/12/08)
Summary:
The ECB interest meeting yesterday showed a 50 bps cut which was a boost for the US dollar and in turn provided direction for crude oil prices. Another factor influencing the energy complex was probably a weaker equities market affected heavily by continuous concerns of an already fragile banking system. Going into Friday, traders are usually inclined to take some profits off table but it’s worth remembering that this week’s economic releases had a clear bearish pattern.
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