Daily Oil Prices - Crude Oil Prices For WTI 6th August 2009
Crude oil prices are delicately poised, reflecting a minor wobble of confidence which appears to have entered the equity markets. In particular the recent falls in the Shanghai Composite but more worryingly yesterday’s S&P500 chart ended the day with an enormous amount of volume sitting under a doji cross candle – a dangerous and anomalous signal. In addition the markets also appear to be waiting for tomorrow’s Non Farm Payroll numbers which may act as the catalyst for this current period of recent bout of wavering, and for daily oil prices this may well provide the fuel to propel oil prices higher. Technically yesterday’s candle also provided a worrying signal in that it ended the oil trading session as a hanging man, which is always considered a bearish signal when it appears at the top of any rally. This bearish signal is also reinforced by the fact that it has occurred in the midst of the congestion area in the $70 to $73 price band which again is not an encouraging sign. The depth of the lower wick is particularly pronounced and with the narrow body above makes this a clearly defined candle. Naturally, we need to wait for this signal to be validated either today or tomorrow and until then my trading suggestion is to stand aside.
