Daily Crude Oil Prices - Daily Chart 11th December 2009
Following the sharp sell off for crude oil price earlier in the week, yesterday provided a welcome pause to this decline ending the oil trading session only marginally lower with a narrow spread down candle and small wicks to both the top and bottom. Whilst this is far from a significant candle pattern (a long legged doji would have been preferred by the oil bulls), it does suggest that the recent slide in oil prices may be coming to a temporary halt. Technically, of course, we are now deep into the 62 – 75 broad congestion created during the long sideways consolidation of the summer months, and which now presents potentially strong resistance above if we are to see a recovery in daily oil prices towards the end of the year. However, for any sustained and meaingful move higher we need to see a break and hold above the $75 per barrel price handle and once this has been achieved then we should see a recovery in due course, but given the recent downwards decline this may take some time before we see this happen. In the meantime the daily oil chart remains strongly bearish and given the very large number of contracts during Wednesday’s trading session combined with a wide spread downbar, all suggests that we will see a further move lower in the short term before prices can recover and bounce higher in the medium to longer term.
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