WTI Oil Price Daily Crude Oil Chart - Current Oil Prices 22nd May 2009
Whilst nervous equity markets may have been the reason for a sell off in crude oil prices the fall in the daily price of oil was relatively modest, a mere 43 cents to settle at $61.07, as the energy complex was well supported by a dramatic weakening of the US dollar, in particular, against the Euro. It now remains to be seen whether the rally in oil prices can be sustained ahead of the national holiday in many countries and the unofficial start of the US driving season. However, we need to be cautious for a number of reasons, first the oil market’s recent bull run will undoubtedly trigger a bout of profit taking ahead of the long weekend and second thin trading volumes may cause a degree of price volatility. From a technical perspective yesterday’s candle ended the session as an “inside day” pattern with the high and the low engulfed by the previous day’s candle, suggesting that the bullish tone remains firmly in place and our initial target of $65 per barrel now seems achievable albeit in the medium rather than the short term. With all three moving averages pointing higher, and supporting the trend, my suggestion for today is to bank any current profits as traders square their accounts of the weekend and then to look for new long positions next week buying into the market on any intra-day dips or daily reversals.
The short and medium term trends are sideways and the long term trend is bullish.
WTI:
Support: $59.92 (yesterday’s low) Resistance: $63.52 (high of 07/11/08)
Support: $58.93 (low of 19/05/09) Resistance: $62.95 (high of 11/11/08)
Support: $58.34 (low of 13/05/09) Resistance: $61.84 (yesterday’s high)
OIL (BRENT):
Support: $58.83 (yesterday’s low) Resistance: $62.38 (high of 06/11/08)
Support: $57.69 (low of 19/05/09) Resistance: $61.98 (high of 10/11/08)
Support: $56.87 (low of 12/05/09) Resistance: $60.68 (yesterday’s high)
