Wednesday, October 20, 2010

Crude Oil Signals Sideways to Lower Prices Possible

Crude oil was higher due to short covering overnight as it consolidates some of Tuesday's decline but remains below the 20 day moving average crossing at 81.33. Stochastics and the RSI are bearish signaling that sideways to lower prices are possible near term.

If December extends Tuesday's decline, trendline support drawn off the August-September lows crossing near 77.75 is the next upside target. Closes above the 10 day moving average crossing at 82.52 would confirm that a short term low has been posted.

First resistance is the 20 day moving average crossing at 81.33
Second resistance is the 10 day moving average crossing at 82.52

Crude oil pivot point for Wednesday morning is 81.30

First support is the overnight low crossing at 79.90
Second support is the uptrend line drawn off the August-September lows crossing near 77.75

Watch: The Ultimate Price Target For Gold!

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