Crude Oil Chart 30 Nov 2009
The deep hammer candle of Friday duly produced a bounce in oil prices yesterday but perhaps not as great as we could have expected, with the session ending with a narrow spread up candle but with shadows to both top and bottom, giving us two areas of concern for this morning’s oil analysis. Firstly the lack of momentum during the day following the strong signal of Friday is a worrying development, and secondly the apparent resistance now apparently in place from the combined moving averages which seem to have presented a barrier to the high of the day yesterday. However, as always in trading we need to give the signal some time to develop and until we see a break below the hammer then for the time being we can assume that the bullish sentiment remains firm, with a sustained rally above the current price congestion validating the signal. Should we see a move lower below the $76 per barrel price level and the floor of the current trend, then this will indicate that the signal has been overruled and that the side lower in oil prices is likely to continue in the short term until we meet the solid platform of price action below, which should then provide the necessary platform for a surge higher in due course. Overall the WTI oil contract ended the session at 77.28 having opened at 75.80 and traded between a high of 78.00 and low of 75.13. Meanwhile Brent closed at 78.47 having opened at 77.40 and traded between a high of 79.30 and low of 76.40. Oil futures traded 339k+ & 156k+ respectively.
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Support & Resistance for WTI Oil
S1: 75.60 R1: 78.47
S2: 73.93 R2: 79.67
S3: 72.73 R3: 81.34
Support & Resistance for Brent :
S1: 76.54 R1: 79.84
S2: 74.62 R2: 81.22
S3: 73.24 R3: 83.14
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