Daily Oil Prices - Oil Chart 28th September 2009
Friday’s oil trading session was characterised by a day of volatility, but one which kept oil prices within a relatively narrow trading range following the steep falls of the last two days, and with the weekend ahead, many oil traders were squaring their positions following the sudden move lower on Wednesday and Thursday. Indeed it could be argued that Friday’s long legged doji candle has given us a positive signal on the daily oil chart, and as such we may expect to see a modest rise in oil prices at the open on Monday morning. However, with the floor of the recent trading channel at $67 per barrel having been breached on Thursday, this now presents a formidable barrier to any recovery into the higher ground above, and with all three moving average now firmly above, the short term picture is certainly bearish for crude oil prices.
As I outlined in Friday’s oil commentary, Thursday’s price action was seminal for oil prices in the medium term, as the consolidation of the last few months has now been broken, with bearish sentiment taking the upper hand, and with oil prices now firmly below this support level, we will now require a period of sustained momentum to break back and through this stubborn price area. In the short term then we can expect oil prices to move lower perhaps as far as re-testing the $59 per barrel price handle, before staging a recovery in due course, and attempting a run higher once again in the medium term. However, as I outlined above, we may well see a move higher Monday as the technical picture suggests that the market has stalled for the time being and may therefore reverse in the short term. Overall the WTI price ended the trading session at $66.02 having opened at $65.92 and reached a high of $67.09 and low of $65.05. Oil futures contracts traded were just over 290k. Brent contract closed oil trading session at $65.11 having opened at $64.81 and reached a high of $65.85 and low of $64.08. Brent oil futures contracts almost 128k.
The short term outlook for oil prices is bearish, the medium term is sideways and the long term is bullish.
Support: 64.87 Resistance: 67.53
Support: 62.89 Resistance: 63.98
Support: 59.87 Resistance: 62.34
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