Thursday, August 26, 2010

Crude Oil Stochastics-RSI Oversold, is This The Near Term Bottom For Oil?

Crude oil was higher due to short covering overnight as it consolidates some of this month's decline. Stochastics and the RSI are oversold and are turning bullish hinting that a short term low might be in or is near.

Closes above the 20 day moving average crossing at 77.53 are needed to confirm that a short term low has been posted. If October extends this month's decline, May's low crossing at 70.35 is the next downside target.

First resistance is the 10 day moving average crossing at 74.26
Second resistance is the 20 day moving average crossing at 77.53

Crude oil pivot point for Thursday morning is 72.08

First support is Wednesday's low crossing at 70.76
Second support is May's low crossing at 70.35

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