Home » Daily Oil Prices » Daily Oil Prices – Daily WTI Oil Chart 28th April 2009

Daily Oil Prices – Daily WTI Oil Chart 28th April 2009

Crude Oil Prices - WTI Price Chart 28th April 2009

Crude oil prices took their cue from continuing weakness in the equity markets following the Wall Street Journal’s report that early stress test results suggest that both Bank of America and Citigroup may need to raise further capital in order to repair their balance sheets.  In addition the oil price came under pressure from a return to the dollar as investors become ever more alarmed at the consequences of swine flu on the world’s fragile economy so this week’s FOMC rate decision will be watched even more closely and no doubt impact across all markets.

From a technical perspective following last week’s rally in oil prices, crude oil moved down yesterday reaching an intra day low of $48.01, crossing through and beyond all three moving averages, before rebounding higher in the evening session to close back above all three once again, leaving us with a down bar with a deep lower shadow.  What was interesting in this price action was that the close of the day finished above the psychologically important $50 per barrel price point once again.  Given the deep lower shadow one might have expected the price of oil to rise in early trading this morning since this candle formation suggests that the bulls have overcome the bears and are regaining control, however, this is not the case this morning, although we could be seeing a re-run of yesterday price action so it would not be a surprise to see the daily oil price move higher as the US markets open later in the day.  My trading suggestion for today is to therefore to look for small long positions intra day in the current reversal using the 15 and 30 minute charts for your entry positions and using a very tight stop loss.

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

WTI:

Support:    $48.01 (yesterday’s low)                              Resistance: $52.44 (high of 09/04/09)

Support:    $47.73 (low of 22/04/09)                              Resistance: $51.75 (high of 24/04/09)

Support:    $46.73 (low of 21/04/09)                              Resistance: $51.20 (yesterday’s high)

OIL (BRENT):

Support:    $48.40 (yesterday’s low)                              Resistance: $53.18 (high of 07/04/09)

Support:    $47.47 (low of 31/03/09)                              Resistance: $52.09 (high of 24/04/09)

Support:    $47.26 (low of 01/04/09)                              Resistance: $51.19 (yesterday’s high)