Thursday, February 19, 2009

Crude Oil Consolidates Below Broken Support


March crude oil was steady to slightly higher overnight due to short covering as it consolidates below broken support marked by December's low, which crosses at $38.00.

Stochastics and the RSI are turning bullish hinting that a short term low might be in or is near.

Closes above the 20 day moving average crossing at $39.75 are needed to confirm that a short term low has been posted.

If March extends this year's decline, psychological support crossing at $30.00 is the next downside target.

First resistance is the 10 day moving average crossing at $37.11. Second resistance is the 20 day moving average crossing at $39.75.

First support is last Thursday's low crossing at $33.55.

Second support is psychological support crossing at $30.00.

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