Friday, September 9, 2011

Obamas "More Debt" Speech and Fridays Oil Numbers

It's looks like traders view President Obamas new "stimulus" plan, yes we'll say it, for just what it is, more debt. Crude oil traded lower in Thursday evenings overnight session consolidating some of Wednesday's rally putting oil into overbought territory.Oil prices are diverging but are neutral to bullish signaling that sideways to higher prices are possible near term. If October extends the rebound off August's low, the May-July downtrend line crossing near 92.45 is the next upside target.

If the oil bulls expect to maintain any of this momentum they will need to defend 83.20, And closes below Tuesday's low crossing at 83.20 would confirm that the rally off August's low 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.

First resistance is Wednesday's high crossing at 90.48. Second resistance is the May-July downtrend line crossing near 92.45. First support is Tuesday's low crossing at 83.20. Second support is the reaction low crossing at 82.95. Crude oil pivot point for Fridays trading is 89.23.

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