Daily Oil Prices Chart - Today 20th January 2009
The daily oil price chart shows the 14 and 40 day moving averages crossing each other yesterday, but that was followed by the 9 day moving averages moving below these two indicators. Probably the most important feature is the fact that on the day when all moving averages have converged, daily crude oil prices declined and managed to hold below all of them despite the rollover into the March contract last Wednesday. This morning oil broke short term trend line support at $44.50 in thin volume, and a failure to hold this level could bring in further technical selling targeting the “Christmas” lows of $36.20.
The short term trend is sideways while the medium and the long term trends are bearish.
Support: $43.80 (yesterday’s low) Resistance: $47.20 (high of 15/01/09)
Support: $42.79 (low of 09/01/09) Resistance: $46.50 (yesterday’s high)
Support: $42.12 (low of 12/01/09) Resistance: $45.74 (14 day moving average)
Summary:
Bank bailout Part2 made headlines yesterday raising concerns that the global recession is deepening. So it was no surprise that after a shaky start with low trading volumes following Martin Luther King Day in the US, the price of crude oil moved lower helped also by a continuously strong US dollar. The demand deterioration in the energy complex was accompanied by additional bearish news: reduced tensions in the Middle East and the apparent settlement of Russia-Ukraine dispute. Today all eyes will definitely be on Obama’s inauguration and all that optimistic sentiment could boost the US currency and in turn extend the pressure on crude oil prices today.
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