Monday, November 22, 2010

Oil Prices Higher on Ireland Debt Plan, Overnight Short Covering

Oil prices are higher this morning after European and global financial authorities agreed to save debt latent Ireland and protect Europe's wider financial stability. This short covering overnight consolidated some of this month's decline.

Stochastics and the RSI are oversold but remain neutral to bearish signaling that sideways to lower prices are possible near term. If January extends the aforementioned decline, the 62% retracement level of the August-November rally crossing at 79.24 is the next downside target. Closes above the 20 day moving average crossing at 84.60 would confirm that a short term low has been posted.

First resistance is the 20 day moving average crossing at 84.60
Second resistance is this month's high crossing at 89.10

Crude oil pivot point for Monday morning is 82.13

First support is last Wednesday's low crossing at 80.65
Second support is the 62% retracement level of the August-November rally crossing at 78.56


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