This technical summary as for the seventh consecutive day we have made new all time highs and this market is showing no signs of relenting. With all of the moving averages pointing upwards and the current short term bull trend still in tact, the chart is showing no obvious signs of weakness. The 9 day moving average at $105.03 is still expected to be a key support indicator, beware this is over $2.50 dollars below current trading levels.
The moving averages and short, medium and long term trends all remain bullish.
Support: $105.56 (low of 13th March) Resistance: $110.00
Support: $105.03 (9 day moving average) Resistance: $109.00
Support: $102.29 (high of 03/03/08) Resistance: $108.02 (all time high)
In terms of oil it seems at the moment that “no news is bad news”. The potential slowdown in demand due to the impending credit crunch appears to be sending even more fund and speculative capital into this market. A month or so ago news of a major US bank (such as Bear Stearns)in trouble would have sent oil hurtling downwards, but oil still seems to be negatively correlated to the stock markets. The weak dollar (not helped by the overnight rate cut) is still a major focus and continues to bring in fresh buy orders. Fridays rally showed us that shorts were very uncomfortable to run these positions over the weekend and the speculative players are certainly seeing more danger to the upside.