Thursday, August 25, 2011
Warren Buffett and Lower Inventories Boost The Markets
Crude oil was slightly higher in overnight trading as it extends this week's short covering bounce. Stochastics and the RSI are 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 86.85. 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 Thursdays trading is 85.43.