Thursday, October 7, 2010

Crude Oil Bulls Maintain The Advantage, Trading Signals Clearly Overbought

Crude oil was higher overnight as it extends the rally off August's low. Stochastics and the RSI are overbought but remain neutral to bullish signaling that sideways to higher prices are possible near term.

If November extends the rally off last week's low, the 62% retracement level of May's decline crossing at 84.65 is the next upside target. Closes below the 20 day moving average crossing at 78.09 would confirm that a short term top has been posted.

First resistance is Wednesday's high crossing at 84.09
Second resistance is the 62% retracement level of May's decline crossing at 84.65

Crude oil pivot point for Thursday morning is 83.20

First support is the 10 day moving average crossing at 79.97
Second support is the 20 day moving average crossing at 78.09



Stock Market Leaders Are Now Lagging?


Share

No comments:

ShareThis