Oil Prices Daily Chart - WTI Oil Prices 27th May 2009
Daily oil prices came under some pressure as the US dollar rebounded on the political tensions with North Korea as well as the toxic debt still lurking in the German banking system. However, investors soon began selling dollars once again as equities pushed higher with the Dow posting a triple digit gain on the back of increasing consumer confidence. As result crude oil prices managed to close the day on a fresh high of $62.55 which was our initial price target for the price of oil in the current move. Owing to the national holiday on Monday in the US the oil stats are running a day late and the only data due out today are the API (American Petroleum Institute) and which are expected to show a decrease in the oil inventory. Meantime the oil market is waiting for the start of the OPEC meeting and we have already had an insight into member thinking with Saudi Oil Minister Ali al-Nuaimi stating on his arrival in the Austrian capital that the cartel is likely to maintain current production quotas. “We will stay the course,” said the minister, whose country is OPEC’s biggest oil producer. He also said that they were looking for oil prices to rise to $75 per barrel, “we hope between the third and fourth quarter” of this year. From a technical perspective yesterday’s candle suggests that this bullish momentum for daily oil prices has not yet run out of steam, ending the day with a deep lower wick which bounced the 14 day moving average and closing with a nice flat top. This price action has been confirmed in early trading this morning, and indeed the opening price for oil was gapped up on a “rising window” once again adding weight to the move higher, although we are now preparing for the weekly round of EIA data coupled with the OPEC meeting, so we need to be a little cautious in our oil trading.
The short and medium term trends are sideways and the long term trend is bullish.
WTI:
Support: $60.85 (low of 25/05/09) Resistance: $65.48 (high of 06/11/08)
Support: $60.49 (9 day moving average) Resistance: $62.87 (high of 07/11/08)
Support: $59.89 (low of 20/05/09) Resistance: $62.55 (yesterday’s high)
OIL (BRENT):
Support: $59.85 (yesterday’s low) Resistance: $62.38 (high of 06/11/08)
Support: $59.23 (9 day moving average) Resistance: $61.98 (high of 10/11/08)
Support: $57.69 (low of 19/05/09) Resistance: $61.35 (yesterday’s high)
