Tuesday, September 6, 2011

Crude Oil Market Commentary For Tuesday Morning Sept. 6th

As the world wakes up Tuesday to a fresh round of currency wars [the Swiss getting a shot in this morning] oil traders remain focused on 82.95 as their next support target. Crude oil was lower due to profit taking in overnight trading. Stochastics and the RSI are overbought and are turning bearish signaling that the a-b-c correction off August's low might be coming to an end.

Closes below August's uptrend line crossing near 83.81 would confirm that the aforementioned correction has ended. 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. Closes above the reaction high crossing at 89.19 are needed to confirm that a short term low has been posted.

First resistance is last Thursday's high crossing at 89.90. Second resistance is the May-July downtrend line crossing near 93.88. First support is August's uptrend line crossing near 83.81. Second support is the reaction low crossing at 82.95. Crude oil pivot point for Tuesday morning is 84.53.

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