Crude Oil Chart 27 Nov 2009
There are hammer candles, deep hammer candles, and then, of course, there is the hammer candle we saw on Friday on the daily oil chart, which perhaps should be in a category all of its own! As always, the hammer candle is an excellent trading signal as it indicates a market where the bulls are buying into the market as it falls and as a result forcing prices higher during the trading session, and leaving us with the classic narrow body ( in this case a red body) and with the very deep lower shadow, which is self explanatory in charting terms thus giving the candle its unique appearance and name. As a result we can expect to see a sharp rise in crude oil prices in the short term, particularly as the low of the day also found support from the upper region of the deep congestion now waiting below, and given these two factors, we should see momentum build on the long side. If this is sufficiently strong then a break and hold above the $82.50 level will indicate a return of the bullish sentiment to the oil market once again, and if so then expect to see the $85 per barrel level reached in due course. Overall the WTI oil contract closed the trading session at 76.05 having opened at 74.70 and traded between a high of 76.47 and low of 72.39. Brent closed at 77.18 having opened at 77.18 and traded between a high of 77.37 and low of 73.70. Oil futures traded 284k+ & 156k+ respectively.
What is the best oil trading platform? In my view it is Metatrader 4. so why not download your free demo copy of the metatrader 4 software by clicking on the following link, download metatrader free, and get started today.
Support & Resistance for WTI :
S1: 73.47 R1: 77.55
S2: 70.89 R2: 79.05
S3: 69.39 R3: 81.63
Support & Resistance for Brent :
S1: 77.11 R1: 77.30
S2: 77.05 R2: 77.43
S3: 76.92 R3: 77.49
Leave a Reply