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Daily Oil Prices – Oil Chart 24th April 2009

WTI Crude Oil Prices - Daily Oil Chart 24th April 2009

Against all the fundamental odds which include weak global demand and an every increasing swelling of the oil stocks both on and offshore, crude oil prices continue to trade near the $50 a barrel price point largely on the view that economic conditions are on the up.  This show of strength in the energy complex was also helped by a weaker US dollar.  However, this weekend’s position squaring may given us a better clue to the future direction for daily oil prices and in particular the likelihood of a breakout from the current pennant formation.  From a technical point of view, oil prices initially moved lower, in yesterday’s trading, but found good support from the 40 day moving average and it was the failure to break below this indicator which sent the price of crude back towards both the 9 and 14 day averages, gaining 95 cents on the day, and once again flirting with the $50 per barrel price level.   Challenging the psychologically important $50.00 oil price per barrel level is now a distinct possibility but as I have outlined before we need to be extremely cautious given the pennant pattern and the unusual price movements that we have seen this week so my advice for any bull traders is to wait for a breakout above this level and only to re enter on the long side should we see a move back above $54 per barrel and supported by all three moving averages.

The short and medium term trends are sideways, the long term trend is bullish.

WTI:

Support:    $48.38 (yesterday’s low)                              Resistance: $51.11 (high of 14/04/09)

Support:    $47.73 (low of 22/04/09)                              Resistance: $50.00 (psychological level)

Support:    $46.73 (low of 21/04/09)                              Resistance: $49.94 (yesterday’s high)

OIL (BRENT):

Support:    $49.25 (yesterday’s low)                              Resistance: $51.92 (high of 20/04/09)

Support:    $48.85 (low of 22/04/09)                              Resistance: $51.11 (9 day moving average)

Support:    $47.47 (low of 31/03/09)                              Resistance: $50.51 (yesterday’s high)