Tuesday, August 17, 2010

Crude Oil Market Commentary For Tuesday Morning

Crude oil was higher due to short covering overnight and is consolidates some of this month's decline. Stochastics and the RSI are oversold but remain bearish signaling that sideways to lower prices are possible near term.

If September extends the aforementioned decline, the reaction low crossing at 74.70 is the next downside target. Closes above the 20 day moving average crossing at 78.83 would confirm that a short term low has been posted.

First resistance is the 10 day moving average crossing at 78.72
Second resistance is the 20 day moving average crossing at 78.83

Crude oil pivot point for Tuesday morning is 75.35

First support is Monday's low crossing at 74.86
Second support is the reaction low crossing at 74.70

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