Technical Repor t :
We had another ‘outside day’ yesterday with a close well below Monday’s low which is a very bearish chart pattern. Another bearish factor is that we crossed down and closed below the 100 day moving average, the first time we have been below that since early February. The fact that we took out the low of 05/06/08 ($121.32)is a worry for the long term trend as we need to see higher peaks and troughs for the trend to remain intact .
The short and medium term trends are down while the long term trends remain bullish.
Support: $120.88 (Yesterdays low) Resistance: $130.50(low of 10/06/08)
Support: $117.56 (high of 25/04/08) Resistance: $126.79 (yesterday’s high)
Support : $114.31 (low of 05/05/08) Resistance: $126.61 (9 day moving average)
Summary:
Earlier in the month the news of explosions in two pipelines in Nigeria would have sent us to t he moon. Especially with Shell calling Force Majeure on Nigerian shipments, the continuing concerns of the Middle East and Hurricanes flying around but we broke through major support on the basis of a strong dollar and a technically weak chart . As mentioned before it is not so much the news but how the market reacts to it that is important and we can see that there is not a great appetite for Oil at the moment and the continuing bearish technical picture should suggest a further test of support levels. As always on a Wednesday, the DOE stats could send us rapidly in any direction.
DOE Stock Estimates (Change in millions bbls)
Crude -0.9 Gasoline +0.1 Distillate +1.7
1 comment:
hey! long time! i changed skin and somehow must have gotten your link all wrong. everytime i click the link, no blogger.. kaya pala.. mali talaga link ko
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