Monday, August 23, 2010

Crude Oil Technical Outlook For Monday Morning

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

If September extends the aforementioned decline, the 75% retracement level of the May-August rally crossing at 72.96 is the next downside target. Closes above the 20 day moving average crossing at 78.25 would confirm that a short term low has been posted.

First resistance is the 10 day moving average crossing at 76.52
Second resistance is the 20 day moving average crossing at 78.25

Crude oil pivot point for Monday morning is 74.08

First support is last Friday's low crossing at 73.19
Second support is the 75% retracement level of the May-August rally crossing at 72.96

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