Crude Oil Chart 24 Sep 2009
Yesterday’s sell off in daily oil prices, continued the trend once again for the crude oil market, with one day’s gains promptly being reversed the following day, with the oil market ending sharply lower with a wide spread down bar. This dramatic fall was hardly surprising given the awful weekly oil stats which revealed a huge build up across all the products. Whilst in previous whip saws the low of any reversal had tended to create a series of lower highs, on this occasion the close of the day ended well below the previous low, suggesting that yesterday’s price action may have changed the sentiment in the oil market as we continue to consolidate in the sideways range between the $67 and $73 per barrel price handles. The key level in the short term will be the lower band of the trading channel, and should this price level be breached then we could see daily oil prices fall further to re-test the $66.50 level. However, give the price action for daily oil prices over the last few weeks, it would be no surprise to see daily oil prices rally once again in the short term and to continue to trade once again in the consolidation range outlined above. Only a break and hold above or below these price points will be sufficient to indicate that a new trend has been established, and until this occurs technically, we may well see a further period of sideways price action on the daily oil chart. Overall the WTI oil contract closed the oil trading session at $68.97 having opened at $71.63 reached a high $71.81 & low of $68.04. Oil futures vols 291k. Meanwhile Brent closed at $67.99 having opened at $70.39, reached a high of $70.48 and low of $67.30. Oil futures just under 159k contracts.
The short term outlook for daily oil prices is sideways, the medium term is bullish and the long term sideways.
Support: 67.76 Resistance: 72.35
Support: 66.12 Resistance: 67.34
Support: 63.45 Resistance: 65.98
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