Crude Oil Chart 7 Dec 2009
The weakness signalled on Friday with the shooting star candle was duly confirmed in Monday’s oil trading session, with crude oil closing the day with a wide spread down candle which increased the momentum of the current downwards slide in oil prices. With the 9 and 14 day moving averages now beginning to weigh heavily in the daily chart, and with the 40 day moving average starting to turn the picture remains bearish in the short term and the key to any reversal will the potential support now immediately below. With such a deep and wide area of price action, this should provide the necessary support for a recovery, and the first test of this area may come later today as we approach the upper level in the $72.50 per barrel price level. If this holds, then we can assume that oil prices may bounce and reverse higher once again, but if this fails to hold, then we may see a further period of sideways price movement at this level. Overall WTI ended the oil trading session at 73.93 having opened at 75.80 and traded between a high of 76.10 and low of 73.70. Brent closed at 76.43 having opened at 77.83 and traded between a high of 78.10 and low of 76.28. Oil futures traded 331k+ & 139k+ respectively.
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Support & Resistance for WTI
S1: 73.05 R1: 75.45
S2: 72.17 R2: 76.97
S3: 70.65 R3: 77.85
Support & Resistance for Brent
S1: 75.77 R1: 77.59
S2: 75.11 R2: 78.75
S3: 73.95 R3: 79.41
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