Home » Daily Oil Prices » Daily Oil Prices – WTI Oil Price Chart 23rd April 2009

Daily Oil Prices – WTI Oil Price Chart 23rd April 2009

WTI Oil Price Chart - Daily Oil Prices 23rd April 2009

Despite the ever burgeoning stockpile which according to the EIA is now at a 20 year high, the daily oil price did not fall as hard as many analysts might have expected and in fact recovered in late trading.  Reasons for this are mixed and range from a weaker dollar to a view that with all the money that governments are throwing at the various stimulus packages will eventually put the brakes on the current economic slump and provide the catalyst for a gentle reversal and long slow recovery.  Needless to say other investors are much more skeptical that the worst of this crisis is over and to some extent these opposing views are being played out in the crude oil market.

From a technical perspective, yesterday’s candle was a re-run of Tuesday but on a smaller scale leaving us with a doji and “inside day” pattern (lower high and a higher low of the previous day), with the body of the candle sandwiched between the 9 and 40 day moving averages.  As I outlined in yesterday’s daily oil price commentary we need to exercise extreme caution in our oil trading for several reasons.  First prices are converging in a “coiled spring” in a pennant formation and are likely to break out with volatility and momentum in due course.  Coupled with this all three moving averages are now converging to a point, and finally we have the oddity of Monday and Tuesday’s price action to consider in the background.  All of this paints a picture of structural instability on the daily oil chart and my suggestion remains the same and that is to stay out of the market until we see a breakout from the current narrow trading range for oil prices.

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

WTI:

Support:    $47.73 (yesterday’s low)                              Resistance: $51.11 (high of 14/04/09)

Support:    $46.73 (low of 21/04/09)                              Resistance: $49.98 (high of 31/03/09)

Support:    $45.53 (low of 20/04/09)                              Resistance: $49.08 (yesterday’s high)

OIL (BRENT):

Support:    $48.85 (yesterday’s low)                              Resistance: $51.92 (high of 20/04/09)

Support:    $47.47 (low of 31/03/09)                              Resistance: $50.63 (high of 21/04/09)

Support:    $47.26 (low of 01/04/09)                              Resistance: $50.32 (yesterday’s high)