Crude Oil Chart 25 Nov 2009
A positive day for current crude oil prices yesterday, which managed to close the trading session higher, ending with a relatively wide spread up candle which recovered some of the ground lost over the last two weeks. However, whilst this was an encouraging sign, technically the picture remains bearish in the short term for several reasons. Firstly, yesterday’s candle found some significant resistance from the 9 and 14 day moving averages, and whilst the importance of these is somewhat reduced at the moment due to the sideways consolidation, nevertheless this does suggest a degree of resistance to any move higher at present. Secondly, and as outlined many times in other daily oil market commentaries, until we see a break and hold above this increasingly deep and wide level of price consolidation, then any move higher can only be viewed as a short term bounce by the market, and not any sign of a longer term trend. Finally, the current slope of the price action is sloping downwards, suggesting that buyers in sellers of oil are prepared to accept increasingly lower prices as the market drifts lower. So overall, the bearish sentiment remains intact for oil prices in the short term, and only a break and hold above the $82.50 per barrel price level will indicate that this has changed, but if and when this does occur, then the current price action will provide an excellent platform for a strong move higher in due course. Overall the WTI oil price ended the oil trading session at 77.96 having opened at 75.83 and traded between a high of 78.09 and low of 75.50. Meanwhile the Brent contract closed its session at 78.44 having opened at 76.60 and traded between a high of 78.63 and low of 76.31. Oil futures traded 321k+ and 156k+ respectively.
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Support & Resistance for WTI Oil Price :
S1: 76.27 R1: 78.86
S2: 74.59 R2: 79.77
S3: 73.68 R3: 81.45
Support & Resistance for Brent :
S1: 76.95 R1: 79.27
S2: 75.47 R2: 80.11
S3: 74.63 R3: 81.59
