Daily Crude Oil Price Chart - 22nd January 2009
Initially heading higher, daily crude oil prices found resistance at the 14 day moving average and eventually declined losing over 1 dollar for the day. Swinging around the moving averages of late would point to more sideways movements but as I mentioned in yesterday’s daily oil post the short term trendline support at $44.50 was broken, and a close above this level is required to re-establish the trend. $41.84 is the initial downside target level and conversely a close above $44.50 points to a challenge of the highs of last week at $49.12.
The short term trend is sideways while the medium and the long term trends are bearish.
Support: $42.96 (yesterday’s low) Resistance: $45.64 (yesterday’s high)
Support: $42.12 (low of 12/01/09) Resistance: $45.06 (40 day moving average)
Support: $41.84 (low of 13/01/09) Resistance: $44.43 (9 day moving average)
Summary:
The inauguration of Barack Obama as the 44th President of the US was definitely the most important piece of news yesterday, having a boosting impact on the US dollar which continued its incredible strong rally, and in turn adding pressure on crude oil prices. Declines in the stock markets especially the Dow, and renewed fears about the state of the banking system, provided some extra negative features for the oil trading. Following the cease fire in Gaza and the restoration of gas flows into Europe is likely to have a negative influence on the oil prices as these geopolitical events were perceived as being the only support for the energy complex recently.
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