Home » Daily Oil Prices » Daily Oil Prices 15 Oct 2010

Daily Oil Prices 15 Oct 2010

crude oil prices

Daily oil prices continue to trade in a sideways range hovering below the $84 per barrel region but continuing to exhibit the positive sentiment of the last three weeks as they continue to hold above all four moving averages.  Yesterday’s candle ended as a narrow spread down bar with wicks to top and bottom, indicating a lively session with the bulls and bears exerting equal pressure and the only point of interest is the downside test which bounced off the 9 day moving average once again, clearly indicating that the bullish momentum remains firm.  As a result of this price action we now appear to be forming yet another pennant formation in this price region with the upper level bounded at the $84.10 price with the upwards sloping base heading towards the $83 per barrel.  Provided we see a continuation of this pattern, with a series of higher lows and no consequent breach of the $84 price point, then we can expect to see a breakout for crude oil once again, in much the same way as we saw in late September and this should then provide the necessary momentum to breach the $87.14 which is now critical to any longer term bullish trend.  Once this price has broken we then have a deep and sustained platform of support below which should provide both a cushion and the requisite springboard for a move higher towards the $100 per barrel price handle in the medium term.  Overall the WTI closed out at $82.70 per barrel.