Friday, October 22, 2010

Crude Oil Bears Appear to Have a Clear Near Term Advantage, Here's Fridays Numbers

Crude oil was higher due to short covering overnight but remains below the 20 day moving average crossing at 81.78. Stochastics and the RSI remain bearish signaling that sideways to lower prices are possible near term.

If December extends this week's decline, trendline support drawn off the August-September lows crossing near 78.10 is the next downside target. Closes above the reaction high crossing at 84.80 are needed to confirm that a short term low has been posted.

First resistance is the 20 day moving average crossing at 81.78
Second resistance is the 10 day moving average crossing at 82.25

Crude oil pivot point for Friday morning is 81.12

First support is Wednesday's low crossing at 79.90
Second support is the uptrend line drawn off the August-September lows crossing near 78.10


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