Home » Daily Oil Prices » Daily Oil Prices – Trade Spot Oil WTI Chart 11th May 2009

Daily Oil Prices – Trade Spot Oil WTI Chart 11th May 2009

WTI Oil Price Chart - Daily Oil Prices 11th May 2009

Last week crude oil prices broke through the $58 per barrel price point on renewed hopes that the global economy was on the mend. This growing optimism was reinforced by Friday’s non farm payroll data which in coming in marginally better than expected helped to rally the equity markets. The data also precipitated a steep fall in the dollar which also boosted daily oil prices as the oil market continues to ignore the more bearish supply/demand fundamentals. However, considering how far and fast the oil price has bounced in the face of these poor fundamentals some short term reversal is inevitable, and indeed in this morning’s early trading oil prices opened gapped down from Friday’s close with a steady fall during the trading session as oil traders take profits.

From a technical perspective the rally in crude oil prices on Friday resulted in daily oil prices making a new high of $58.73, gaining $1.86 and actually settling on the high of the day. With strong support from all three moving averages there is no reason to suppose that this bullish momentum will not continue in due course with the first price target being $60 and if this is breached we could see a move to re-test resistance in the $65 per barrel price region in the medium. All this may happen sooner given the extent to which the US dollar seems to be weakening and this is clearly indicated on the dollar index chart. My trading suggestion for today is to look for buying opportunities on an intra day basis as the market falls during the day.

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

WTI:

Support: $56.87 (Friday’s low) Resistance: $59.65 (high of 13/11/08)

Support: $55.42 (low of 07/05/09) Resistance: $58.95 (high of 17/11/08)

Support: $54.72 (9 day moving average) Resistance: $58.73 (Friday’s high)

OIL (BRENT):

Support: $56.64 (Friday’s low) Resistance: $59.43 (high of 07/11/08)

Support: $55.43 (low of 07/05/09) Resistance: $58.59 (high of 11/11/08)

Support: $53.86 (low of 06/05/09) Resistance: $58.50 (Friday’s high)