Thursday, October 14, 2010

Crude Oil Daily Technical Outlook For Thursday Morning Oct. 14th

Crude oil was higher overnight and appears poised to renew the rally off August's low. At the same time, stochastics and the RSI are overbought but are turning neutral to bullish signaling that additional short term gains are possible.

If December renews the rally off last week's low, the 75% retracement level of May's decline crossing at 88.07 is the next upside target. Closes below the 20 day moving average crossing at 80.39 would confirm that a short term top has been posted.

First resistance is last Wednesday's high crossing at 85.08
Second resistance is the 75% retracement level of May's decline crossing at 88.07

First support is the 10 day moving average crossing at 83.13
Second support is the 20 day moving average crossing at 80.39


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