Daily Oil Prices WTI - Daily Candle Chart 6th March 2009
Failure to break above the first major resistance at $48.58 (high of 26th of Jan) meant crude oil prices declined yesterday losing $1.73 in a 2.78 dollars range, stopping just short of crossing the 9 day moving average, which proved to be good support. Although the oil chart has indicated a few bullish signals recently it was rather sideways for the last 3 months within the $33.20 – $50.00 range so a decline towards the bottom end level technically cannot be discarded.
The short term trend is bullish, the medium term trend is sideways and the long term trend is bearish.
WTI:
Support: $42.87 (yesterday’s low) Resistance: $47.48 (high of 27/01/09)
Support: $42.82 (14 day moving average) Resistance: $47.00 (high of 23/01/09)
Support: $41.10 (low of 04/03/09) Resistance: $45.65 (yesterday’s high)
OIL (BRENT):
Support: $42.85 (yesterday’s low) Resistance: $48.22 (high of 10/02/09)
Support: $41.85 (low of 25/02/09) Resistance: $47.48 (high of 06/02/09)
Support: $41.60 (low of 03/03/09) Resistance: $46.42 (yesterday’s high)
Summary:
Daily oil prices retraced after the Chinese Premier made no announcements on any fresh stimulus package, disappointing investors who were hoping to see concrete plans of increasing government spending. New recent lows in the Dow, a sell off led by financial stocks coupled with reactions following the interest rate decisions, definitely increased the pressure on the oil market which looks set to stay sensitive to any piece of economic data. Today traders will turn their attention to the non-farm payroll report which in case of a negative surprise may pose an obstacle to further gains in the energy complex and could potential trigger new falls in oil prices today.
