Friday, August 26, 2011

Crude Oil Markets Welcome Ben and Irene over for Friday Trading

Crude oil was slightly lower in Thursday overnight trading as traders watched Hurricane Irene bear down on North Carolina threatening at least 10 oil refineries. But traders seemed to be more concerned with overall demand and how Ben Bernanke will spin the markets from Jackson Hole Wyoming today.

We are giving the oil bulls a slight near term advantage as the Stochastics and RSI remain bullish signaling that sideways to higher prices are possible near term. Closes above the reaction high crossing at 89.19 are needed to confirm that a short term low has been posted. If October renews the decline off May's high, the 75% retracement level of the 2009-2011 rally crossing at 71.73 is the next downside target.

First resistance is the 20 day moving average crossing at 86.27. Second resistance is the reaction high crossing at 89.19. First support is last Friday's low crossing at 79.38. Second support is this month's low crossing at 76.15. Crude oil pivot point for Friday morning trading is 84.96.

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