Wednesday, August 25, 2010

Crude Oil Daily Technical Outlook Wednesday Morning

Crude oil was slightly higher due to short covering overnight as it consolidates some of this month's decline. Stochastics and the RSI are oversold but remain neutral to bearish signaling that additional weakness is possible near term.

If October extends the aforementioned decline, May's low crossing at 70.35 is the next downside target. Closes above the 20 day moving average crossing at 77.75 would confirm that a short term low has been posted.

First resistance is the 10 day moving average crossing at 74.44
Second resistance is the 20 day moving average crossing at 77.75

Crude oil pivot point for Wednesday morning is 72.00

First support is the overnight low crossing at 71.32
Second support is May's low crossing at 70.35

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