Probably the most significant feature of Friday’s activity was t he fact that we didn’t make a new low at the end of the week. The ‘Inside Day’ had half the range of the previous day but failed to challenge the lows giving the market the opportunity for a bounce. The 9 day moving average is starting to flaten out and a st rong day today would take it above the 14 day which would be a bullish signal for the short term.
The medium term and short term trends are bearish while the long term trend is sideways.
Suppor t : $56.81 (low of 07/11/08) Resis t ance: $63.96 (low of 22/10/08)
Suppor t : $56.44 (low of 06/11/08) Resistance: $62.38 (high of 06/11/08)
Suppor t : $55.88 (high of 25/01/07) Resis t ance: $61.13 (low of 05/10/08)
Summary:
Last Friday we saw a weakening US dollar and a rebound in the stock markets which in turn helped a short rally in the crude price fuelled also by the usual short covering before the week-end. The rally seems to have further to go in the trading session early this morning on the back of China ’s announcement of stimulus package worth over $500 billion. But accepting the fact that these occasional price corrections are possible providing fresh selling opportunities, as long as the fundamentals don’ t change we feel t hat t he big picture is still dominated by a bearish sentimen t .
The medium term and short term trends are bearish while the long term trend is sideways.
Suppor t : $56.81 (low of 07/11/08) Resis t ance: $63.96 (low of 22/10/08)
Suppor t : $56.44 (low of 06/11/08) Resistance: $62.38 (high of 06/11/08)
Suppor t : $55.88 (high of 25/01/07) Resis t ance: $61.13 (low of 05/10/08)
Summary:
Last Friday we saw a weakening US dollar and a rebound in the stock markets which in turn helped a short rally in the crude price fuelled also by the usual short covering before the week-end. The rally seems to have further to go in the trading session early this morning on the back of China ’s announcement of stimulus package worth over $500 billion. But accepting the fact that these occasional price corrections are possible providing fresh selling opportunities, as long as the fundamentals don’ t change we feel t hat t he big picture is still dominated by a bearish sentimen t .