Thursday, August 12, 2010

Crude Oil Continues it's Slide....Lower Prices Still Likely

Crude oil closed lower on Thursday as it extends yesterday's breakout below the 20 day moving average crossing at 79.05. Renewed concerns over both the domestic and world economy and the negative ramifications of potential lower world demand continues to weigh on the energy complex.

The low range close sets the stage for a steady to lower opening on Friday. Stochastics and the RSI are bearish signaling that sideways to lower prices are possible near term. If September extends this week's decline, the reaction low crossing at 74.70 is the next downside target. Closes above the 10 day moving average crossing at 80.36 would confirm that a short term low has been posted.

First resistance is the 20 day moving average crossing at 79.05
Second resistance is the 10 day moving average crossing at 80.36

First support is today's low crossing at 75.52
Second support is the reaction low crossing at 74.70

New Video: How To Use Fibonacci Retracements

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