Crude Oil Chart 20 Nov 2009
As outlined in several posts last week, the 40 day moving average is now the key technical indicator in the next trading period as oil prices continue to consolidate in a sideways trading range, which we saw once again on Friday as another oil trading week came to a close. The support from the 40 day average was once again in evidence as the low of the day found support from this increasingly important technical level, before recovering later in the day and ending with a narrow spread down candle but with a deep shadow to the lower body. Whilst oil prices in general have been sliding lower over the last few weeks, as clearly seen on the daily oil chart, the failure to penetrate the 40 day moving average is a key signal, and coupled with the lower shadow of Friday, would suggest that we may see a move higher once again for crude oil later this week, with a break and hold above the $82.50 price handle remaining our initial price level, for any bullish sentiment to be confirmed. Should this price level be breached this week then we can assume that the potential resistance currently being created has now become a potential support level and one which will provide the necessary springboard for a move higher towards our medium term target of $85 per barrel in due course. Overall the WTI oil price closed the oil trading session at $76.72 having opened at $77.59 and traded between a high of $77.99 and low of $76.20. Brent closed its session at $77.20 having opened at $77.93 and traded between a high of $78.15 and low of $76.50.
Support & Resistance for the WTI Oil Price:
S1: 75.95 R1: 77.74
S2: 75.15 R2: 78.76
S3: 74.16 R3: 79.53
Support & Resistance for Brent:
S1: 76.41 R1: 78.06
S2: 75.63 R2: 78.93
S3: 74.76 R3: 79.71
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