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Forecast for daily oil prices – 2nd September 2012

daily oil prices for the WTI oil price contract

WTI oil futures December contract – daily chart

Daily oil prices continued to move higher on Friday following the recent bullish trend with the December WTI contract closing the oil trading session at $96.47 per barrel. Following the sharp sell off for oil, which saw it touch a low of $77.88 per barrel at the end of July, the commodity has been rising ever since, following the strong buying volume which entered the market on the 29th June.

Since early August the volume on the three day chart has remained firmly bullish and coupled with the three day trend has seen daily oil prices extend these gains into early September. Following the sideways consolidation in August, oil price have since broken out, and with this solid platform of price support now in place, the outlook remains firmly bullish in the short to medium term. For the bullish tone to continue we need to see a clear break and hold above the $97.50 dollar per barrel level, and if this is breached, then the price of oil is likely to re-test the $100 per barrel region once again, where a deep area of price resistance now awaits.

Since early July, Hawkeye has delivered four Roadkill entry signals with the latest a conservative signal on the 6th August supported by strongly bullish volume in both timeframes, a green Heatmap and green trend on both the daily and the three day chart. However, it is interesting to note that in the last four days on the daily chart, sellers have returned to the market, driving the oil price down from the early highs of the week, giving an early warning of a short term pullback for the commodity. However, the longer term outlook remains bullish, and with the Federal Reserve now signaling a further round of quantitative easing with a consequent weakening of the US dollar, then we can expect to see oil prices continue to rise further as the currency weakens over the next few months.

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