Daily Oil Prices - WTI Oil Price Chart 8th June 2009
Despite daily oil prices spiking to yet fresh highs and at one point touching the $70 per barrel price point, crude oil ended slightly lower on Friday primarily as a result of the surprising NFP data which came in below market expectation and provided a significant dollar bounce. Whilst 345,000 may be the slowest rate of job loss the unemployment rate is at 9.4%, one of the highest since records began and only marginally better than the 10.8% posted in November 1982. Nevertheless investors chose to view these numbers as evidence that the worst of this current downturn may now be over leaving crude oil prices in the unique position of being able to benefit in almost all market conditions.
From a technical perspective once the price of crude had spiked through the $70 per barrel level (another record for 2009) the rally was not sustained with many oil traders banking profits ahead of the weekend and daily oil prices finished the day 46 cents lower to close at $68.39 per barrel, closing the session with a long legged doji. As always, this type of candle indicates indecision in the market and a possible turning point, and therefore we should not be surprised to see a possible fall in oil prices in the short term, and in will be interesting to see whether the 9 and 14 day moving averages provide support as has happened at other points in the move – if so then we can assume that the bullish sentiment remains intact, but should these fail to hold, then we may see a pullback to retest the $62- 65.00 per barrel in due course.
The short and medium term trends are sideways and the long term trend is bullish.
WTI:
Support: $67.50 (Friday’s low) Resistance: $71.20 (high of 22/10/08)
Support: $66.40 (low of 01/06/09) Resistance: $70.53 (high of 30/10/08)
Support: $65.92 (low of 04/06/09) Resistance: $70.40 (Friday’s high)
OIL (BRENT):
Support: $67.35 (Friday’s low) Resistance: $71.90 (high of 17/10/08)
Support: $65.49 (low of 01/06/09) Resistance: $70.15 (high of 16/10/08)
Support: $64.91 (low of 03/06/09) Resistance: $69.91 (Friday’s high)
