Home » Daily Oil Prices » Daily Oil Prices – Trading Oil WTI Oil Price Chart 22nd June 2009

Daily Oil Prices – Trading Oil WTI Oil Price Chart 22nd June 2009

WTI Oil Price Chart - Daily Crude Oil Prices 22nd June 2009

Even Friday’s spike higher in the Eurodollar (which was more of an exercise in stop hunting by the market makers), could not prevent daily oil prices falling and which may have been prompted by oil traders taking profits ahead of the weekend, as investors appear to have developed a severe case of the jitters as markets are, once again, looking somewhat fragile.    The oil market, in tandem with other markets, has been studiously ignoring the fundamental news picture for some time, preferring optimism and sentiment over hard economic numbers .  However, this week may see a strong dose of realism re-enter the markets as the FMOC statement, US GDP numbers and the Treasury Auction will confirm the viability of current market moves and the future direction of the US Dollar, which is the key for crude oil prices.  From a technical perspective Friday’s candle provided several interesting points to consider, ahead of what could prove to be a pivotal and dramatic week for daily oil prices, ( as for many other markets).  The candle closed the session as a wide spread down bar, and engulfing Thursday’s doji candle, suggesting a bearish tone, possibly reinforced by the fact that the high of day failed to clear the strong resistance at $73.23 now in place.  This bearish view, however, needs to be counterbalanced by the fact that the low of the day was fully supported by the 14 day moving average, so a slightly contradictory picture appears to be emerging.

The bearish picture has however gained momentum this morning, with some significant falls in early trading with crude oil prices currently trading down $2.63 at $68.63 and well below the 14 day moving average.  What is also particularly interesting, and something which so far I have not included in my daily oil commentaries, are the trading volumes, which on Friday were very high, and when viewed against those of earlier in the week, would suggest that Friday was a day of extremes, which may well indicate a significant turning point in both sentiment and the market.  For those of you familiar with volume spread analysis (VSA),  then a wide spread down bar, coupled with high volume, may well suggest that the market has turned and we could see a much deeper move as a result.  This view is reinforced when considered against the volume and price action of earlier in the week. With a consolidating move on low volume, combined with a market showing little interest in rising, this could be a very important signal and a sign that something dramatic is about to happen to crude oil prices, and the broader markets in general.

The short term is bearish, the medium term is sideways and the long term is bullish

WTI:

Support:    $68.88 (Friday’s low)                                 Resistance: $73.23 (high of 11/06/09)

Support:    $68.44 (low of 09/06/09)                              Resistance: $72.78 (high of 16/06/09)

Support:    $67.50 (low of 05/06/09)                              Resistance: $72.30 (Friday’s high)

OIL (BRENT):

Support:    $68.63 (Friday’s low)                                 Resistance: $72.40 (high of 16/06/09)

Support:    $68.24 (low of 09/06/09)                              Resistance: $72.27 (high of 11/06/09)

Support:    $67.35 (low of 05/06/09)                              Resistance: $71.96 (Friday’s high)


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