Daily Oil Price Chart 17 May 2010
As outlined in Friday’s commentary daily oil prices have continued to fall off the metaphorical cliff, plunging well below the 200 day moving average in this morning’s London oil trading session, with the WTI contract even re-testing old support in the $70 per barrel price region, although prices have managed to rebound at the time of writing. With the 9 day moving average now crossing below the 200 day this is also giving us a bear cross signal so provided we see this price point breached then expect to see crude oil prices hit $68 per barrel which is the next key support area and if this fails to hold then we may even see a re-test of $60 per barrel in the medium term. The weekly chart confirms this view with last week’s down candle having closed below all four moving averages, including the 200 week, so longer term the outlook remains bearish for the time being.
