Wednesday, November 10, 2010

Crude Oil Technical Outlook For Wednesday Morning Nov. 10th

Crude oil was lower due to profit taking overnight as it consolidates some of the rally off August's low. Stochastics and the RSI are overbought and are turning neutral to bearish hinting that a short term top might be in or is near.

Closes below the 20 day moving average crossing at 83.49 are needed to confirm that a short term top has been posted. If December extends the aforementioned rally, the 75% retracement level of May's decline crossing at 88.07 is the next upside target.

First resistance is Tuesday's high crossing at 87.63
Second resistance is the 75% retracement level of May's decline crossing at 88.07

Crude oil pivot point for Wednesday morning is 86.61

First support is the 10 day moving average crossing at 84.88
Second support is the 20 day moving average crossing at 83.49


Watch "How To Use Fibonacci Retracements"

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