Monday, October 18, 2010

Crude Oil Technical Outlook For Monday Morning Oct. 18th

Crude oil was slightly lower overnight as it extends last week's decline below the 10 day moving average crossing at 82.96. Stochastics and the RSI are overbought, diverging and are turning bearish signaling that additional weakness is possible.

Closes below the 20 day moving average crossing at 80.82 would confirm that a short term top has been posted. If December renews the rally off August's low, the 75% retracement level of May's decline crossing at 88.07 is the next upside target.

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

Crude oil pivot point for Monday morning is 81.78

First support is the 20 day moving average crossing at 80.82
Second support is the reaction low crossing at 75.10


The Fibonacci Tool Fully Explained

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