Home » Daily Oil Prices » Futures Oil Trading – Daily Oil Chart WTI 20th April 2009

Futures Oil Trading – Daily Oil Chart WTI 20th April 2009

Oil Prices WTI - Daily Chart 20th April 2009

Despite crude oil stocks at record highs both in the US and offshore in a flotilla of storage vessels the market has decided to place more weight on a recovery in oil demand from China (the second largest consumer after the US) and worries over lost crude exports from Nigeria, where civil unrest is continuing to disrupt production, as the main drivers for the price of crude oil.  These two factors have helped the energy complex remain defiant in the face of weakening fundamentals although analysts are now suggesting that a rising stock market will also contribute towards a firming of the oil price making it difficult for the bears to put any significant downward pressure on the price of crude oil.

Just as on Thursday Friday’s crude oil prices hovered around the 9 and 14 day moving averages, closing marginally above both for the day, and although crude oil gained 33 cents for the day the move resembled the consolidation from the last few sessions, which continues in the pennant formation of the last few weeks.  With all three moving averages now beginning to converge towards the point of the pennant we must wait for the inevitable breakout which will be accompanied with both volume and momentum and based on the chart one would expect this to be a break to the upside.  However, until it arrives trading oil will be extremely difficult, and my suggestion for today is to sit on the sidelines, or alternatively trade using a straddle options strategy, and for the latest oil prices just follow the link.

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

WTI:

Support:    $51.64 (Friday’s low)                                 Resistance: $55.79 (high of 03/04/09)

Support:    $50.15 (low of 08/04/09)                              Resistance: $54.69 (high of 14/04/09)

Support:    $49.05 (low of 01/04/09)                              Resistance: $53.24 (yesterday’s high)

OIL (BRENT):

Support:    $52.63 (yesterday’s low)                              Resistance: $54.31 (high of 06/04/09)

Support:    $51.85 (low of 09/04/09)                              Resistance: $54.10 (high of 14/04/09)

Support:    $51.15 (low of 06/04/09)                              Resistance: $53.97 (yesterday’s high)