Crude Oil Chart 3 Dec 2009
The downwards slide in crude oil prices continued yesterday, with the daily oil chart ending with a relatively wide spread down candle which closed below all three moving averages and with a small shadow to the upper body which seemed to find some resistance from the 14 day moving average – a worrying signal for oil bulls! Whilst the general trend is lower at present, we are now beginning to approach the deep area of congestion which is now waiting in the wings as a potential support platform to any sustained and deeper move, and it will be interesting to see how this price area reacts in the next few days as we move to a possible re-test over the early part of next week. For today, the price action may be volatile partiularly as we have the monthly release of the NFP data, which is forecast at -199k which is marginally better than previous. In addition traders need to watch the unemployment rate which is now over 10% (forecast to remain at 10.2%) & which now stands at a 26 year high. Whatever happens expect markets to react in their usual inimitable fashion. Technically in the short term the daily oil chart remains bearish with the moving averages now indicating a gentle decline, with the 14 day croosing above which is adding some weight to these signals. The key, as I have outlined in several previous oil market reports will be the reaction of the potential support below, and with only a break and hold above the current congestion and into the $82.50 per barrel level indicating a break to the upside. Overall WTI ended the session at 76.46 having opened at 76.63 and traded between a high of 77.50 and low of 75.54. Brent closed its session at 78.36 having opened at 78.09 and traded between a high of 78.95 and low of 77.41. Oil futures traded: 339k+ & 148k+ respectively.
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Support & Resistance for WTI
S1: 75.50 R1: 77.46
S2: 74.54 R2: 78.46
S3: 73.54 R3: 79.42
Support & Resistance for Brent
S1: 77.53 R1: 79.07
S2: 76.70 R2: 79.78
S3: 75.99 R3: 80.61
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