Daily Oil Prices Chart 25 Aug 2009
The oil trading market took a breather yesterday following the explosive break out of last week, and with little fundamental news on the economic calendar yesterday, ended the crude oil trading session with a small doji candle, indicative of a ‘no news’ day, and an oil market waiting for direction. That direction is likely to be upwards, as the strong support now in place below daily oil prices, should provide the springboard that the crude oil market has been waiting for during the last few weeks, and with plenty of clear water between the current crude oil price and the three moving averages, we should be well protected from any temporary pull back in oil prices. Given the strength of the recent move, we may see a few days of sideways consolidation at this trading level, before crude oil begins to trade higher once again, with oil traders booking profits on thin trading volumes, as indicated by the volumes in the crude oil futures market. However given the present bullish sentiment towards crude as both an valuable asset and hedge against a weak Dollar we should see crude oil trading at around $75 per barrel in the short term, with a price of $79.60 per barrel as our next target in the medium term. Overall WTI oil contract closed at $74.37 per barrel having achieved an intra day high of $74.81 per barrel.
Support: 72.70 Resistance: 75.70
Support: 66.40 Resistance: 68.90
Support: 59.70 Resistance: 65.45
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