Friday, October 15, 2010

Crude Oil Technical Outlook For Friday Morning Oct. 15th

Crude oil was slightly lower overnight as it extends Thursday's decline but remains above the 10 day moving average crossing at 83.13. At the same time, stochastics and the RSI are overbought, diverging 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 80.68 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 80.68.


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