WTI Daily Crude Oil Price Chart - 21st May 2009
Yesterday’s expectation of a down bar failed to materialise and therefore our concerns over the evening star candle of the previous day were unfounded as daily oil prices moved forward strongly closing the day on a wide spread up bar finishing well above, and strongly supported by, all three moving averages, and breaking through the $60 per barrel price point once again. The price of crude oil ended the day at $61.65, a gain of $1.55 having also achieved a record high for the year of $62.25 per barrel during the oil trading session. From a fundamental perspective oil prices were given this boost by better than expected EIA figures which showed a larger than expected draw in crude inventories as well as a weakening of the US dollar.
From a technical perspective the saucer pattern of the last 6 months is now perfectly formed on the daily oil price chart as the price of oil continues to track back up towards the resistance at $65 per barrel created back in October 2008. This is the next significant area in the path of a move higher and may provide stubborn resistance to crude oil prices moving forward.
The short and medium term trends are sideways and the long term trend is bullish.
WTI:
Support: $59.89 (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: $62.25 (yesterday’s high)
OIL (BRENT):
Support: $58.76 (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: $60.80 (yesterday’s high)
