Daily Oil Prices On WTI Price Chart - 17th July 2009
The better than expected GDP growth figures from China appear to have had little impact on the price of crude oil which is taking its cue from the equity markets, a weak US Dollar and news from the API that in the first half of 2009 oil demand in the US has fallen by almost 6%, its lowest level in a decade. These elements are to some extent reflected in the S&P500 where both the bulls and the bears are claiming various head and shoulder patterns as they own and supportive of their own prejudices. Technically yesterday’s candle was interesting for several reasons, first and from a negative perspective, it failed to follow through on the bullish momentum created on Wednesday. However, on the positive side the deep lower wick suggests a modicum of bullish sentiment in the market and secondly the close of the day finished above the 9 day moving average once again, which reinforces this particular view. On balance therefore a mixed message on the daily oil chart. The $60 per barrel price handle seems to have stopped the rot in daily oil prices and should we see a break and hold above both the 14 and 40 day moving averages in due course then we may well see a recovery in daily oil prices but the strong resistance now in place at the $70 per barrel level will take considerable force and momentum to pierce. Overall crude finished 34 cents higher to settle at $63.22 having at one stage touched an inter day low of $61.46 per barrel.
The short and medium term sideways while the long term is bullish.
WTI:
Support: $61.46 (yesterday’s low) Resistance: $64.46 (high of 27/05/09)
Support: $60.66 (low of 15/07/09) Resistance: $63.60 (high of 08/07/09)
Support: $60.03 (low of 14/07/09) Resistance: $63.22 (yesterday’s high)
OIL (BRENT):
Support: $61.99 (yesterday’s low) Resistance: $64.48 (high of 28/05/09)
Support: $61.33 (low of 15/07/09) Resistance: $63.83 (high of 15/07/09)
Support: $60.48 (low of 14/07/09) Resistance: $63.30 (yesterday’s high)
Hi Anna,
Thanks for the regular updates. Your commentary and explanations are invaluable to help me understand the oil market.
I’ve just started working in marketing for a junior oil exploration company. Most of our properties are in Kansas, but our offices are in Texas. I spent most of May and June in Birmingham, UK, networking with investment managers to educate them about our company and the opportunities that exist.
I have one question. What time frame do short, medium, and long refer to?
Thanks again,
Pete
the charts must be more simpler and uptodate